RuPay credit cards on UPI: You can now apply for EMIs through the app

From splitting large purchases into EMIs to managing bills and limits, everything can be done conveniently within your UPI app.

Great news for RuPay credit card users! The National Payments Corporation of India (NPCI) has announced  new features coming to the Unified Payments Interface (UPI) platform. These features, which will be available by May 31, 2024, will make managing your RuPay credit card easier and more convenient.

Apply for EMIs on past and future purchases

The new features announced include EMI facility on the linked credit accounts on UPI app, Credit Account Bill Payment, Instalment Payment and limit management. The NPCI has asked issuing entities like banks and card issuers to enable these features by May 31, 2024.

One of the biggest highlights is the introduction of Equated Monthly Installments (EMIs) for RuPay credit card purchases. This means you can now split your purchases into manageable monthly payments directly through your UPI app. 

1. EMI on past purchases: Did you buy something big recently? No worries! You can now convert past purchases made with your RuPay credit card into EMIs using your UPI app's transaction history.
2. EMI at checkout: Planning a new purchase? You can now choose the EMI option right at the time of payment using UPI. This saves you the hassle of applying for EMIs later.
3. Track Your EMIs easily: Your UPI app will keep you informed about your ongoing EMIs, so you never miss a payment.

The current EMls will be shown in the correct section of the UPI app. According to the rules of the issuer company, the user will not be permitted to change or remove the EMI, with the exception of foreclosure, as it would be considered a loan.

What this means for you?

"New feature allows users to apply for an EMI facility on their associated credit accounts. Upon approval of the applicable terms and conditions, users get the facility to convert their past purchases made using credit accounts into EMIs directly through the linked UPI App from their transaction history. Furthermore, users will be able to find their current EMIs displayed in the UPI app. But they will not be permitted to alter or remove the EMI, except for foreclosure, as it will be considered as a loan," said Adhil Shetty, CEO of Bankbazaar.

This functionality seeks to empower users to utilise the UPI app for various payment needs, including making one-time payments or setting up UPI AutoPay to settle past-due credit card bills and credit line installments, both for themselves and other users.

Users will now also be able to manage credit account bill payments and instalments

The new feature enables users to make one-time payments or set up UPI Autopay for the hassle-free settlement of outstanding credit card bills or credit line instalments. This functionality extends to payments for self as well as others.
 

"“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”, said the NPCI release.

You can access details of your card's oustanding bills on the UPI app
The UPI app will also provide users with a view to access details regarding their linked credit card outstanding bills and credit line installment details, such as the minimum amount due, total amount due, and bill due date, ensuring transparency and facilitating informed financial decisions.

"Upon receiving payments, the Issuer bank would clear the dues in real-time and makes the enhanced balance available to the user for further usage, enhancing the overall user experience and convenience of managing credit accounts through the UPI app," said Shetty.

Users will have the option to request an increase in their credit limit from the issuing company
This will enable users to accept or apply for an enhancement of their credit limit directly from the issuing entity through the UPI platform. This feature is designed to simplify the process of managing credit lines, allowing users to tailor their financial resources according to their needs.

This functionality allows you to request a credit limit increase directly through your UPI app. This can be helpful in various situations, such as:

1. Making a large purchase
2. Facing an emergency
3. Needing extra credit for unexpected costs
4. Covering festival or family event expenses
5. It also allows banks to initially set lower credit limits and then raise them based on your spending habits

Currently, 16 banks are live to link RuPay Credit Card on UPI – Punjab National Bank, Union Bank, Indian bank, HDFC Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank, BOB Financial Ltd, SBI Cards, ICIC Bank, AU Small Finance Bank, IDFC Bank, Federal Bank, Catholic Syrian Bank, IndusInd Bank, Yes Bank.

How can I link my RuPay Credit Card on UPI?

Please download BHIM app from Google Playstore. Complete the registration journey, select Credit Card as an option. Select your issuing bank name from the drop down. Basis the mobile number update with your issuing bank, masked Credit Cards will appear on the screen. Select the card which you want to link and confirm. Proceed to generate UPI PIN.

You will have to setup UPI Pin to authenticate Credit Card transactions using Card pin. Please select the Credit Card from the linked credit card accounts, select set UPI Pin option from the dropdown. Enter last 6 digits of your RuPay Credit Card number, enter the expiry date, follow steps to complete the journey. You can u  change your UPI pin of your respective RuPay Credit Card account by selecting ‘Change UPI Pin’ from the drop-down menu. Follow the steps.

How to activate UPI on RuPay credit card?

To Enable the RuPay Credit card on UPI, the user needs to discover the Credit card issuer bank on the UPI apps under add Credit card option and link the card on the UPI apps. Post linking the user needs to set up UPI PIN for the linked Credit card using their Credit card details as guided in the UPI apps. After linking and PIN set, the user can use the RuPay Credit card for payment.

What is the limit of RuPay credit card on UPI?

Amount limit per card per day - UPI limit (1 lakh per day and 2 lakhs for some special merchant category codes), however it will be limited to the available credit limit on your card.