The credit card facility on the National Payment Corporation of India’s (NPCI) UPI platform is experiencing significant growth. Monthly transactions have reached approximately Rs 10,000 crore.
NPCI CEO and Managing Director Dilip Asbe also revealed that the pre-approved loan facility on UPI is gaining momentum, with up to Rs 200 crore being distributed monthly.
Launch and Adoption of UPI Credit Card Facility
NPCI introduced the credit card facility in November 2022, allowing users to link their credit cards to UPI apps, consolidating monthly payments into the credit card bill.
Multiple lenders now offer this feature, with ICICI Bank leading in the pre-approved ‘credit limit’ facility on UPI. About half a dozen banks have rolled out this service to their customers.
Growth Amidst Concerns
The surge in credit card-linked UPI transactions comes at a time when concerns are rising over the rapid increase in unsecured loans like credit cards and personal loans.
Despite these concerns, UPI remains a widely used platform, with 46.6 crore transactions recorded in July alone.
Central Bank Digital Currency (CBDC) and UPI
Asbe also clarified that the central bank digital currency (CBDC) is not designed to compete with UPI. Instead, CBDC offers unique features that are expected to be highly beneficial for India.
Key Figures and Trends
Monthly UPI Credit Card Transactions: ~Rs 10,000 crore
Monthly Pre-Approved Loans via UPI: ~Rs 200 crore
UPI Transactions in July: 46.6 crore
