Did you know that the credit card facility of the National Payments Corporation of India (NPCI)’s UPI platform is gaining momentum? NPCI’s CEO and Managing Director Dilip Asbe shared that the credit card facility is processing transactions worth about Rs 10,000 crore per month. Additionally, the pre-approved loan facility on UPI is also picking up pace, with up to Rs 200 crore being disbursed through it monthly.
NPCI introduced the credit card facility in November 2022, allowing users to link their credit cards to the app. This feature consolidates all monthly payments into the credit card bill. Many lenders are now offering credit card facilities, with ICICI Bank leading in the pre-approved ‘credit limit’ facility on UPI.
Around half a dozen banks have rolled out this facility for their customers. This development comes at a time when concerns are being raised over the rapid increase in unsecured loans, such as credit cards and personal loans. Despite this, UPI remains a widely used platform, processing 46.6 crore transactions in July. Asbe also clarified that the central bank digital currency (CBDC) is not meant to compete with UPI, and it offers several features that could be beneficial for India.
