UPI Credit Card: NPCI is launching a new facility for customers in collaboration with RBI. Under this facility, you will be able to use your UPI as a credit card. Currently, this facility will be available to customers of only a few banks.
UPI Credit Line: If you also use UPI, then this news is useful for you. UPI users are going to get the benefit of such a facility for the first time, which will be a completely new experience for you. Now you too will be able to spend freely through UPI, whether you have money in your pocket or not. Yes, the National Payments Corporation of India (NPCI) is bringing a new system through UPI in the country, this method will work exactly like a credit card. The entire system will be based on Buy Now, Pay Later.
These banks started the facility after RBI’s permission
According to the news published in Times of India (TOI), the Reserve Bank of India (RBI) has allowed banks to give credit line to customers through UPI. Many banks including Axis Bank, HDFC Bank, ICICI Bank, Indian Bank and PNB are providing this new facility. In the credit line, the customer gets a loan up to a fixed limit and has to pay interest only on the amount spent. In this new facility of UPI, you can shop directly from your bank account without any money being deducted.
Customers will not have to pay any extra fee
This facility will work like a credit card. Its payment has to be made at a fixed time. Currently, this credit can be used only for shopping at shops. When a customer uses this facility, the shopkeeper will have to pay the fee charged on this service. You will not have to pay any extra fee for the new facility. This is a new feature of UPI, to use which you do not need to do any new system or new process.
The easiest way to pay from a bank account
UPI was started eight years ago. Now it has become so popular that it has become the easiest way to pay directly from a bank account to shops. A debit card is not required to make payment in this. Credit can also be used on UPI, which works almost like a credit card. Shopkeepers also benefit from using UPI because they have to pay less charges than the charges levied on using credit cards. This is the reason why a large number of people prefer to use UPI.
Most people are using cash for shopping
According to a report, about 53% people prefer to use UPI for online shopping. Apart from this, 30% people use digital wallet or card (credit or debit) for online payment. On the other hand, about 75% people still use cash while buying goods at the shop. However, 25% people prefer to pay with UPI at the shop and 20% people use digital wallet or card.
NPCI started many facilities
In the last few years, many facilities have been started by NPCI to make UPI more user friendly. First, UPI Lite was launched. In this, a certain amount from your bank account goes to a virtual wallet and you can use that money to make small payments. In this, you do not need to enter password again and again or fast internet.
After this, NPCI gave the facility to Rupay card holders to add their cards to the UPI app and make payments like a credit card by scanning the UPI QR code. Digital Rupee, recently launched by the Reserve Bank of India (RBI), can also be used with UPI. Now you will be able to make payments by scanning the UPI QR code from your e-Rupee wallet.
