How Rupay Credit Card Linkage, UPI Lite, Bharat BillPay Cross-Border Payments Help Customers

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In a major move to take India’s digital payments journey to the next level, RBI Governor Shaktikanta Das has launched three key initiatives, namely RuPay Credit Card on UPI, UPI LITE and Bill Payments cross-border Bharat BillPay. This decision should help both Indian citizens and NRIs as it covers almost all customer segments. The initiative holds the potential to revolutionize the digital payments ecosystem and extend the reach of digital payments to many new users in India and abroad.

Speaking about the initiative, Sumit Gwalani, co-founder of Fi Money, a neo-bank, said, “The recently launched digital payment initiatives by RBI and NPCI build on the phenomenal success of UPI and span together almost all low-value customer segments from debit transactions to large-value credits and cross-border payments. »

In July, UPI crossed 6 billion transactions in July, which is the highest since 2016. During the month of August, digital payment transactions through UPI amounted to 10.73 lakh crore in value, while in volume, the transaction stood at 6.57 billion.

Here’s how customers will benefit from these digital payments initiatives:

Linking RuPay credit card on UPI

The first is to link RuPay credit cards to the Unified Payments Interface (UPI) platform. According to NPCI’s statement, customers here will benefit from greater opportunity to use their credit cards, and merchants will benefit from increased consumption by being part of the credit ecosystem with card acceptance. credit using assets like QR codes.

RuPay credit cards will be linked to a virtual payment address (VPA), i.e. a UPI identifier.

In the initial phase, customers of Punjab National Bank, Union Bank of India and Indian Bank will be the first to use RuPay credit card on UPI with BHIM app.

Fi Money co-founder said, “Linking credit cards to UPI will make low-value credit transactions more feasible, which can significantly deepen credit card penetration in India. This means wider access to formal credit, allowing more people to benefit from the responsible use of credit. “

UPI Lite

UPI Lite on BHIM app will allow users to perform small value transactions in near offline mode. Under UPI Lite payment, the upper limit for a transaction will be 200, meanwhile, the total UPI Lite balance limit for an on-device wallet will be 2,000 at any time.

Currently, eight banks are using this feature. These are – Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India Union Bank of India and Utkarsh Small Finance Bank.

On UPI Lite, Gwalani said, “UPI Lite will greatly benefit people in areas with limited internet connectivity and can convert a large portion of cash transactions into digital payments. In addition to enabling faster transactions, it can also reduce failure rates by taking a load of low-value, high-volume offline transactions.”

Bharat BillPay Cross Border Bill Payments

Finally, Bharat BillPay cross-border bill payments are launched to facilitate bill payments for people residing outside India but also to maintain a home in India, aka Non-Resident Indians (NRIs).

The facility will enable NRIs to undertake utility, water and telephone related bill payments on behalf of their families in India. Initially, the Federal Bank with Lulu Exchange of the United Arab Emirates will be the first to go live with the cross-border bill payment service Bharat BillPay.

Fi Money co-founder said, “Enabling cross-border payments on Bharat BillPay makes these transactions much more efficient and represents a major step towards a more connected financial ecosystem. It offers NRIs more control and convenience while reducing the cost of these transactions. .”

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.

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