UPI payments broke the record in India! | Now UPI payments will be done through credit card.

Records have broken in India in the case of UPI:

From March to May, inflation has attacked everyone. The inflation data for April, released in May and has broken the records for two years. A similar effect is expected to be visible in May's figures as well, but despite this difficulty of inflation, the economy has also performed strongly in May. of UPI transactions which crossed ₹10,00,000 crore for the first time in May to ₹10.41 crore.

A total of 5.95 billion transactions were done last month, while the number of UPI transactions was 2.54 billion in May 2021, which was affected by the second wave of Corona. But if it is compared with April this year, then during that time 5.58 billion UPI transactions were done, and the transaction amount was ₹ 9.83 Lakhs Crore. 

Retailers and wholesalers also believe that if the effect of inflation had been less, they could have set many records on the sales front in May. The export of clothes increased a lot and there was an increase within the fastag, along with good earnings were also seen in the manufacturing sector, so somewhere this pace will come within the economy as well. 

In fact, in May, there had been such a continuous spray of good news that the recovery was visible in the pace economy. The GDP figures for 2021-22 also reached a 22-year high with 8.7%, which came at the end of May. The manufacturing PMI has also witnessed a strong expansion with 54.6, and export orders hit an 11-year high this month. Indian textile exports registered a record growth in May to reach $44.4 billion. 

The GST collection in May also became the fourth highest collecting month with 1.41 Lakh crores. At the same time, the collection of Fastag reached the highest level ever with 141 crores daily. At the same time, car sales also crossed the upper level in May 2019 for the first time in two years. Experts believe that there are many reasons to be happy with this highest level. But the danger of inflation is such that it will not take long to dissipate this joy.

The inflationary challenges remain too high to be survivable at this point with only focus. The government must do some help by cutting the price of petrol and diesel and gas a little bit. But We don't think that it has made much impact on people's lives. By the way, the way the RBI and the government together have taken steps to contain inflation has increased the confidence that there will not be much impact on growth. Based on this belief, RBI has also increased the growth forecast from 0.2% to 7.5% in 2022-23. 

UPI payments will be done through credit card:

The Reserve Bank of India has given a big gift to crores of people using UPI for online payments and digital transactions. Now it will be possible to make payments through UPI not only from a savings account or current account but also through a credit card. RBI is going to start this facility soon. This will make it much easier to transact for everyone.

RBI Governor Shaktikanta Das gave this information on Wednesday after the meeting of the Monetary Policy Committee. He said that to encourage transactions in the Reserve Bank, it has been decided to provide the facility of UPI payment through credit cards. They are linking the Unified payment interface i.e. UPI to Rupay credit cards. 

RBI Governor Shaktikant said, "UPI has become the most inclusive mode of payment in India with over 26 Core unique users and five core merchants on the platform. The progress of UPI in fact in recent years has been unparalleled and its overall functioning has been quite exemplary. And now many other countries are engaged with us in adopting similar modes and similar methods in their countries. 

In May this year alone, about 594 crore transactions amounting to ₹10.4 lakh Crore were processed through the UPI. At present, UPI facilitates transactions by linking savings or current accounts through users' debit cards. It is now proposed to allow the linking Of credit cards on the UPI platform. To begin with, the Rupay credit cards will be linked to the UPI platform. This will provide additional convenience to the users and enhance the scope of digital payments".

UPI is a concept that allows multiple bank accounts to transfer money through a single mobile app. To authorize every payment, it is necessary to enter the mobile PIN. Only after that, you can make the payment. At present, instructions related to this will be issued to NPCI to link the credit card with UPI. Let us tell you that the linking of the credit card with UPI will be started with the Rupay credit card. 

Later, this facility can also be started for credit cards based on other gateways including MasterCard and Visa. According to the information, it will be possible to pay without swiping the bank or credit card with this facility. For this, the credit card will have to be linked with UPI first. After that, payment can be made directly by scanning the QR code. 

While making the payment, you will get the option to make the payment, either you choose a credit card or choose a debit card for payment. As soon as you start UPI payment an OTP will come on your registered mobile number. Once the OTP is submitted, the payment will be completed. Let us tell you that with the new facility of RBI, western transactions will get a boost, along with this, users will also get a new option of payment. 

You can do everything from shopping to transferring money by linking it to a credit card. Let us understand from the example, suppose Amit wants to transfer money to his partner Mahesh. Amit does not have money in his bank account, so he wants to add money from his credit card and then gives it to Mahesh. As per the information so far, now any third party can add money through MobiKwik, or PhonePe with a credit card. 

There is also a charge for this process, but in the new facility, you will be able to send money through UPI to someone else's bank account. This means that Amit will no longer need a third party to add money to his credit card and will be able to transfer money directly to his partner Mahesh and he will not have to pay any kind of charge for it.

However, RBI has not said anything clearly about the charges yet. Similarly, when Amit goes to a shop, he will get a scanner, and after scanning, he will be able to pay with a credit card through UPI. During this time Amit will not have to pay any extra charge. Normally, the way we use credit cards, then we have to pay charges. Similarly, payment through UPI will also attract credit card charges. 

This means to say that whatever extra charges will be incurred will be on the credit card. This facility will be easy for those people who withdraw cash from a credit card or transfer money from it to a bank account when needed. In both these situations, people have to pay extra charges and taxes. 

In fact, on every transaction made on options other than UPI and Rupay cards, merchants have to pay some percentage of the transaction amount. It is later divided between banks and payment service providers. Merchant Discount Rate (MDR) was reduced to zero on 1 January 2020 on UPI and Rupee transactions. That is, no fee is levied on the transaction. For this reason, traders all over the country adopted UPI. 

However, even after the new announcement of RBI, it is not clear how the Merchant Discount Rate (MDR) will be applicable for UPI transactions by linking credit cards. This is because, in the current situation, the highest MDR is levied on credit card transactions. It is closer to 2% to 3%. Let us tell you that the payment from Google Pay already gives you the option to add the credit card to your UPI. 

Although it happens to the merchant. This means that you can pay the merchant, not any other person. The option to add your smart debit card or credit card from Google Pay is only for the pay business section. This facility is not available for payment to any individual. At present, RBI is want to issue guidelines regarding its latest decision soon, with which the situation will become more clear.

We hope you like the information about UPI payments. If you have any questions, please comment on our site www.tradeipo.hub.co.in. Thanks for reading.