Finance Desk – UPI (Unified Payments Interface) is now India’s most popular way to make digital payments. Earlier, it could only be linked with savings or current accounts. But now, the Reserve Bank of India (RBI) has allowed users to link their credit cards to UPI—starting with RuPay credit cards. This change brings together the ease of UPI with the power of credit cards, offering more flexibility and rewards to users.
Use Credit with UPI’s Simplicity
When you link your RuPay credit card with a UPI app (like PhonePe, Paytm, Google Pay, or BHIM), you can make payments just by scanning a QR code or entering a phone number. No need to carry your card or swipe it. This helps especially in places that don’t have card machines—like roadside vendors, taxis, or food stalls—where UPI is easily accepted.
Earn More Rewards on Daily Expenses
Credit cards give you rewards like cashback or points—but usually only for online shopping or card-swipe payments. With UPI now supporting credit card payments, you can earn rewards even for small daily expenses like:
Street food
Auto/taxi rides
Grocery purchases
Utility bill payments
These small spends can quickly add up, helping you earn rewards faster and reduce your total monthly costs—if you repay on time.
Enjoy Credit Period and Liquidity
Credit cards come with an interest-free credit period—usually 20 to 50 days. When you use your credit card through UPI, you still get this benefit. This can help you manage your monthly budget better and avoid cash shortages.
Track Spending Easily
Using your credit card for UPI payments means all your expenses are recorded in one monthly statement. This makes it simple to monitor your spending habits and plan your budget—especially helpful for salaried individuals and working professionals.
Use with Care
While this setup offers many benefits, it also requires discipline:
Since the amount isn’t deducted instantly from your bank, overspending is easy.
If you don’t pay your bill on time, interest charges can pile up.
So far, only RuPay credit cards can be linked with UPI, and some merchants may not accept them due to charges.
