As per an ET report, NPCI announced on March 29, that RuPay credit cards and pre-approved credit lines can now be linked on UPI, facilitating secure payment transactions.This integration aims to offer users enhanced convenience in using their credit cards and pre-approved credit lines. Here are the details of the new features introduced:
EMI facility
Users can now apply for an EMI facility directly through the UPI app for their linked credit accounts. Once the terms and conditions are approved, users can complete the process by entering their UPI PIN for authentication.
The feature will allow users to convert their previous credit card purchases into monthly instalments (EMI) using the linked UPI app based on their transaction history.
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The existing EMIs will be displayed in the appropriate section of the UPI app. Users will not be allowed to modify or cancel the EMIs, except in cases of early repayment, as it’s treated like a loan according to the issuer company’s policies.
Credit account bill payment and instalment management
This feature enables users to use the UPI app for making one-time payments or setting up UPI AutoPay to settle outstanding credit card bills and instalment payments for both themselves and other users.
NPCI release further stated that, “To do this, Payer PSP shall create UPI ID for receiving credit account bill/ instalment payment. UPI App shall provide a view for the user to access the details of linked credit card outstanding bill/ credit line instalment details (minimum amount due, total amount due, bill due date etc). Issuer bank shall clear the dues in real-time upon receiving payments, and make the enhanced balance available to the user for usage.”
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Limit management
Users will have the ability to request an increase in their credit limit from the issuing company. This option will be used when making substantial purchases, during emergencies, or when the existing limit is insufficient for unforeseen expenses. Moreover, this feature allows the issuing bank to initially set lower credit limits and then adjust them based on the user’s spending behaviour.
It’s important to note that this functionality enables changes to credit limits via UPI apps, which may be general or specific for a temporary period, requiring explicit consent from the user by entering their UPI PIN.