Report Wire

Tag: digital payments

  • India’s Digital Payments Record Double-Digit Growth: RBI Data | Economy News

    New Delhi: Digital payments in India have registered a 12.6 per cent increase year-on-year with the RBI’s Digital Payments Index (RBI-DPI) rising to 445.5 at the end of March 2024 compared to 418.77 in September 2023 and 395.57 in March 2023. .

    “The RBI-DPI index has increased across all parameters driven by significant growth in payment performance and payment infrastructure across the country over the period,” the RBI said on Friday. The Reserve Bank has been publishing a composite RBI-DPI index since January 1, 2021 with March 2018 as the base to capture the extent of digitization of payments across the country.

    The RBI-DPI comprises 5 broad parameters that enable the measurement of penetration of digital payments in the country over different time periods. These parameters are — (i) Payment Enablers (weight 25 per cent); (ii) Payment Infrastructure – Demand-side factors (10 per cent); (iii) Payment Infrastructure – Supply-side factors (15 per cent); (iv) Payment Performance (45 per cent), and (v) Consumer Centricity (5 per cent).

    Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators.

  • UPI vs UPI Lite: Transaction restrict, different key variations defined

    UPI vs UPI Lite: United Payments Interface (UPI) and UPI Lite symbolize two aspects of digital cost programs. UPI, a complete platform, allows seamless transactions, linking a number of financial institution accounts, and provides a variety of companies. On the opposite hand, UPI Lite is a simplified model, catering to customers in search of primary performance. It’s like a primary cell phone with name and textual content capabilities. 

    What is UPI?

    UPI is a 24X7 instantaneous cost system that permits you to switch cash in actual time between two financial institution accounts.

    What is UPI Lite?

     UPI Lite is an on-device pockets characteristic that permits customers to make real-time small-value funds.

    “UPI and UPI Lite are both revolutionary in their own right. While UPI has transformed the digital payment landscape in India, UPI Lite is set to take it a step further by making digital transactions accessible to every Indian, irrespective of their internet connectivity. UPI Lite will give more wings to UPI transactions, expanding the reach and impact of digital payments. It’s not about one versus the other, but about how both can coexist to accelerate financial inclusion in our country,” stated Amit Nigam, Executive Director & COO at BANKIT

    Difference Between UPI Lite and UPI?

    UPI Lite differs from UPI in varied methods. Here are a few of the vital variations between UPI Lite and UPI:

    Dr. Navneet Gupta, Founder and CEO of YPay stated that UPI Lite focuses totally on fund transfers and funds, omitting some superior options. “While UPI provides versatility, UPI Lite gives simplicity, making certain accessibility for all, no matter tech-savviness. Considering that characteristic telephones nonetheless represent 50% of the market, it will support funds the place web penetration is low,” said Navneet Gupta.

    Moreover, in a country like India, where a significant portion of the population resides in Tier-3/4 cities and villages, UPI Lite can work wonders, he added.

    UPI vs UPI Lite: Who can use it?

    Customers of all UPI Member banks with NPCI can use UPI via TPAP applications like BHIM, Google Pay, Paytm, PhonePe, etc., or mobile banking apps of member banks.

    UPI Lite feature has been enabled on the BHIM app and some other TPAPs like PayTM. Currently, customers of eight banks can use this facility.

    UPI vs UPI Lite: How to check the transaction history?

    UPI Lite customers receive an SMS daily containing the history of UPI Lite transactions carried out during the day from the bank. UPI users can keep track of their transactions through the transaction history option on the UPI mobile application

    UPI vs UPI Lite: Transaction Limit

    “The maximum amount that can be transferred in a day from a bank account via UPI is Rs. 2 Lakhs. A total of 20 transactions can be done from a bank account using UPI in a span of 24 hours. On the other hand, UPI Lite users can transfer a maximum of Rs. 4,000 in a span of 24 hours. There is no limit to the number of transactions done through UPI Lite, however, the maximum limit of a transaction is Rs. 200,” stated Mehul Mistry, Global Head – of Strategy, Digital Financial Services & Partnerships, Wibmo, a PayU firm

    UPI PIN

    A 4 to 6-digit PIN is obligatory for UPI transactions. However, you do not want a PIN to ship cash by way of UPI Lite, stated Mehul Mistry.

    UPI vs UPI Lite: Sending cash

    As per Mehul Mistry, one can ship cash P2P and do P2M funds utilizing each UPI and UPI Lite.

    UPI vs UPI Lite: Receiving cash

    With UPI one might obtain cash as effectively. However, with UPI Lite, solely debit out of your pockets is permitted.

    Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise buyers to examine with licensed specialists earlier than making any funding choices.

    “Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!” Click right here!

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Updated: 03 Oct 2023, 02:38 PM IST

  • India able to share DPI ecosystem with world south: DEA Secretary

    New Delhi: India is able to share technical capabilities and information associated to its Digital Public Infrastructure (DPI) ecosystem for monetary inclusion efforts of the Global South, Ajay Seth, secretary, Department of Economic Affairs (DEA) mentioned on Friday.

    Speaking on the International Conference on Digital Public Infrastructure, Seth mentioned that India has used ecosystems round DPI, which is an interoperable, scalable, open, and inclusive system, digitally empowering, to supply society large providers by private and non-private gamers.

    “We developed a solution approach for delivering the best in the class services for the last mile and even the remotest parts of the country,” Seth mentioned including that the nation’s achievements are well-known in numbers.

    The world’s largest monetary inclusion mission, the Pradhan Mantri Jan-Dhan Yojana (PMJDY), crossed the five hundred million mark final month, 9 years after it was launched with over ₹2 trillion value of deposits. Over 55.5% of financial institution accounts belong to girls, and 67% come from rural and semi-urban areas.

    “The average balance in these accounts is over ₹4,000. Our digital payment system, UPI, crossed 10 billion transactions in the month of August alone,” Seth mentioned. “Today, greater than 5.5 crore Jan Dhan (Pradhan Mantri Jan Dhan Yojana) accounts are receiving direct profit transfers and authorities schemes have already made financial savings of over $27 billion.”

    He said that DPI approaches are capable of solving societal problems at a scale even under crisis.

    “DPIs facilitate innovation, and are efficient for each private and non-private sector, particularly for SMEs of rising international locations in addition to developed economies,” Seth said.

    “In the backdrop of challenges, the necessity of the hour is to determine easy, scalable, examined and sustainable options that may remodel our societies and economies by eradicating poverty and guaranteeing common healthcare and schooling,” he added.

    Meanwhile, chief financial advisor, V. Anantha Nageswaran, current on the occasion, mentioned that important areas the place international locations can collaborate for monetary inclusion and progress by the DPI strategy embrace information sharing, capability constructing, and cross border linkages to assist remittances.

    “Our first step should be to encourage and foster knowledge sharing on the design, development and operations of DPIs,” Nageswaran mentioned. “These collaborations will result in refinements of DPIs in international locations which have already applied them.”

    “Exciting information! Mint is now on WhatsApp Channels 🚀 Subscribe immediately by clicking the hyperlink and keep up to date with the most recent monetary insights!” Click right here!

    Catch all of the Technology News and Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates & Live Business News.

    More
    Less

    Updated: 22 Sep 2023, 07:22 PM IST

  • UPI may turn into a template for digital funds for different nations: PM at G20

    New Delhi: Prime Minister Narendra Modi on Friday urged finance ministers and central financial institution governors of G20 nations to expertise India’s “path breaking” digital funds platform Unified Payments Interface (UPI), which may turn into a template for different nations.

    Addressing the inaugural session of the primary finance ministers and central financial institution governors assembly of the G20 below India’s presidency, Modi mentioned that the nation could be comfortable to share its expertise with the world on digital funds.

    “…During our G20 Presidency, we’ve created a brand new system. This permits our G20 company to make use of India’s path-breaking digital funds platform, UPI. As you make use of it and expertise its ease of use, you’ll perceive why Indian customers have adopted it so willingly. Examples like UPI may be templates for a lot of different nations too. We could be comfortable to share our expertise with the world. And, the G20 is usually a automobile for this,” PM Modi said during his video address at the FMCBG G20 meeting, which is taking place in India’s tech capital Bengaluru. 

    He said that India’s digital payments ecosystem, which is “highly secure, highly trusted, and highly efficient” has been developed as a free public good, and has radically remodeled governance, monetary inclusion, and ease-of-living in India.

    While the prime minister highlighted the advantages of digital funds, he mentioned that it was vital to develop requirements to control dangers emanating from misuse of expertise.

    “During the pandemic, digital funds enabled contactless and seamless transactions. However, some current improvements in digital finance additionally pose dangers of destabilization and misuse. I hope that you’ll discover how the ability of expertise can be utilized for good, whereas creating requirements to control its doable dangers. India’s personal expertise is usually a mannequin,” said Modi.

    The meeting, spread over three sessions on Friday and Saturday, will cover issues like leveraging digital public infrastructure for advancing financial inclusion and productivity gains, financing resilient, inclusive, and sustainable cities for tomorrow, and strengthening multilateral development banks to address shared global challenges like sustainable development goals.

    Amid lingering global economic uncertainty and geopolitical risks, the prime minister urged participants of the FMCBG G20 meeting to work together to bring stability in the global economy. He also highlighted the erosion of trust in the international financial institutions partly due to the “slow reforms”.

    “The COVID pandemic has delivered a once-in-a-century blow to the worldwide economic system. Many nations, particularly creating economies, are nonetheless dealing with its after-effects. We are additionally witnessing rising geo-political tensions in several components of the world. There are disruptions in world provide chains. Many societies are struggling resulting from rising costs. And, meals and power safety have turn into main considerations the world over. Even the monetary viability of many nations is threatened by unsustainable debt ranges. It is now as much as you – the custodians of the main economies and financial methods of the world to carry again stability, confidence and development to the worldwide economic system. It just isn’t a straightforward job,” mentioned Modi.

    Catch all of the Technology News and Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates & Live Business News.

    More
    Less

  • Lost cash to financial institution fraud? Know how scammers can dupe you in numerous methods

    In the previous three to 4 years, digital fee modes have seen a lot traction as UPI transactions by way of cellphone have change into extra accessible. However, this has additionally led to many scammers utilizing tech-related gaps and idiot shoppers in some ways. Scamming has change into extraordinarily straightforward with fraudsters luring shoppers with faux provides. We checklist some strategies utilized by fraudsters to idiot folks.

    Phishing/Vishing: Scammers create a phishing web site with URLs much like a official web site, resembling a financial institution’s web site. These hyperlinks are distributed by way of SMS, electronic mail, immediate messenger, and so forth. Users mistake the URL for the official URL of the web site and enter safety credentials such because the PIN, passwords, OTP, and so forth., which fraudsters accumulate and utilise.

    Murari Sreedharan, CTO of BankBazaar.com, mentioned, “The scammers might attain out over the cellphone pretending to be financial institution staff, insurance coverage brokers, authorities officers, and so forth., and should pressurise or trick you into revealing confidential and delicate data. They might cite your identify or date of beginning to win your belief and say that they require this data as an emergency measure to cease a transaction, stop your account from being blocked, get a reduction, keep away from a penalty, and so forth.”

    Unknown/unverified mobile apps: Sometimes, phishing attacks involve app links instead of websites. Clicking on these links results in downloading unknown or unverified apps of dubious origins that look similar to authorised apps. Such unverified apps can change permissions and give complete and unrestricted access to the device to fraudsters.

    “At times, the download links can be to screen-sharing apps that allow scammers to monitor or control the device remotely and gain access to confidential financial credentials. They can then access your device to initiate and complete transactions on the compromised device without your permission,” mentioned Sreedharan.

    Collection request scams: Scammers might use the gathering request possibility on UPI to rip-off folks. The ordinary means is to persuade folks that they should approve the gathering request and supply their UPI PIN to obtain cash, often citing that it’s a debt reversal or refund.

    Loan fraud: Among the numerous banking frauds that entrepreneurs change into victims of, the most typical is mortgage fraud. Ajeet Kumar Singh, founder and CEO of SAVE Solutions, mentioned that mortgage frauds often embody impersonation of reputed lenders, or the provides include a way of urgency whereas luring folks to avail of loans on minimal situations. You can simply keep away from changing into a goal of mortgage fraud by completely researching the lender. This consists of checking that they’re an RBI-registered NBFC or Bank. Reading evaluations in regards to the lender, checking their web sites, and making certain they’ve good evaluations or taking loans solely by means of advisable establishments can also be a good suggestion. Fake lenders usually extract an upfront payment. Genuine lenders don’t ask for any advance earlier than offering a mortgage. “Ensure that you simply learn the superb print to keep away from any surprising deductions,” mentioned Kumar.

    ATM card skimming/Quick Response (QR) codes rip-off: Fraudsters usually instal skimming units like a dummy keypad or a small / pinhole digital camera in ATMs and take clients‘ debit card information. The scammers then use the information to create a replica card and withdraw cash from their checking account

    Besides, scammers can contact you for banking amenities and trick you into scanning a QR code utilizing the cellular utility put in in your cellphone. As you scan such code, you could unknowingly authorise the scammers to withdraw cash out of your checking account.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Subscribe to Mint Newsletters

    * Enter a legitimate electronic mail

    * Thank you for subscribing to our e-newsletter.

  • Huge comfort price for digital funds coming in method of cashless India

    NEW DELHI: The coronavirus pandemic fuelled the buying of services and products. But with the comfort of digital funds, has come a typical shopper grievance of excessive comfort price levied by numerous service suppliers for on-line transactions, which LocalCircles has been receiving during the last 12 months.

    A comfort price is a cost that customers pay to digital service suppliers for the service or the comfort they provide, which may very well be for cost of electrical energy, broadband, railway ticket or air ticket. IRCTC, the railways ticketing web site, below the Ministry of Railways, fees a comfort price of as much as 10%. Similar fees are levied to ebook a film ticket on-line, a safari on a state authorities web site or paying college price.

    Consumers utilizing bank cards must pay a further cost levied on retailers by the banks and community suppliers who in flip go it on to the buyer.

    Taking cognisance of the difficulty of comfort price being levied for a lot of companies, LocalCircles carried out a nationwide survey to grasp shopper pulse on comfort charges charged by digital service suppliers that facilitate on-line companies. It additionally sought to know from shoppers in the event that they really feel that the federal government ought to get rid of such fees at the least for presidency and its associated entities and cap it for personal entities. The survey acquired greater than 30,000 responses from throughout 344 districts of India. About 65% respondents had been males whereas 35% had been ladies. 46% respondents had been from tier 1, 34% from tier 2 and 20% respondents had been from tier 3, 4 and rural districts.

    77% shoppers mentioned they had been being charged a price for almost all of companies they ebook on-line

    Many ticketing or companies bought on-line require shoppers to pay a sure price as comfort fees, significantly for reserving tickets. To the query that requested shoppers their expertise with comfort fees within the final 12 months, 38% mentioned they’ve been charged “Convenience price for all companies bought on-line”, 39% paid “Convenience fee for majority of the services purchased online”, and 18% had been “Charged comfort price just for a couple of companies bought on-line”. There were only 2% of consumers who have “Never been charged a convenience fee for services procured online”, whereas 3% couldn’t say. The survey end result signifies that 77% of shoppers are being charged comfort or service fees for almost all of the tickets or companies they ebook on-line.

    75% shoppers pay comfort or service fees although they disapprove of it

    Convenience or service cost is levied to cowl IT prices in some circumstances. In different circumstances, along with inner IT prices levied in type of comfort cost, a further quantity is charged by companies to cowl the associated fee they pay to cost processing corporations when a buyer makes a cost utilizing an digital or digital cost mechanism. The price is usually a set quantity or a proportion of the sale, which varies from firm to firm. About 75% of shoppers mentioned they “Pay disapprovingly”, while 15% said they “Happily pay, at least I don’t have to stand at a counter”.

    93% shoppers need the federal government and PSUs to cease charging comfort or service fees and promote Digital India

    Consumers have additionally complained that in lots of circumstances this comfort price is charged per individual and never per transaction. This implies that if an individual is reserving a ticket for 3 passengers in the identical reserving, they might be charged a comfort price per passenger. Citizens on the LocalCircles platform have reported that even authorities affiliated websites like IRCTC, energy firms, and so forth. cost a sure price as a comfort cost when reserving a ticket or making funds for companies on-line.

    There have been many solutions previously that the Government of India ought to prohibit levying of any comfort price and different fees on the usage of any digital mode of cost to a service provider, which in return might enhance its effort to advertise Cashless or Digital India. In the next query that requested shoppers if the Government ought to get rid of comfort price for on-line bookings of companies or tickets offered by the Government and its PSUs, 93% answered “Yes”. There were, however, 4% of consumers who said “No”, whereas 3% couldn’t say. This query within the survey acquired 7,448 responses, as per the survey.

    Most shoppers need comfort or service fees to have an higher restrict as absolute worth of ₹50 or 0.5% of transaction worth

    Currently, there are not any guidelines to manage comfort price in India, with such fees left to the discretion of digital service suppliers. Consumers say that the majority service suppliers add comfort price simply earlier than testing or making the ultimate cost and never share it upfront. The closing query requested shoppers how the comfort fees for on-line ticketing and repair purchases ought to be greatest saved in test. In response, 63% mentioned it ought to “Be outlined as an absolute worth with a most of ₹50″, while 30% want it to “Be capped at 0.5% of the transaction value”. Only 3% mentioned, “Don’t take any motion and let service suppliers resolve” whereas 4% couldn’t say. The findings point out that the majority shoppers need comfort or service fees to have an higher restrict as an absolute worth of ₹50 or 0.5% of transaction worth. The query within the ballot acquired 8,082 responses.

    Many shoppers locally discussions during the last 12 months have been expressing how at instances they’ve shunned conducting a cashless or digital transaction as a result of these fees. Be it visiting the varsity to drop the price test as an alternative of paying digitally or making a test cost to a journey agent as an alternative of paying by credit score or debit card, the examples are aplenty.

    Undoubtedly, India has seen exponential development in digital funds during the last 6 years since demonetisation. The pandemic has accelerated the adoption of digital funds additional. However, there may be nonetheless a protracted method to go. In most tier 2, 3 & 4 cities, digital funds are nonetheless not the first mechanism for cost, it’s money. If India is ready to implement among the adjustments proposed i.e. elimination of comfort price for any Central or State Government associated digital funds together with affiliated entities like PSUs, IRCTC, and so forth. and discover a method to cap comfort fees levied by personal entities on digital transactions, it might go a really great distance in driving up digital cost transactions, transferring us additional in direction of a Cashless India, as per the survey.

    Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
    Download The Mint News App to get Daily Market Updates.

    More
    Less

    Subscribe to Mint Newsletters

    * Enter a sound e mail

    * Thank you for subscribing to our publication.

    Post your remark
    First article

  • Fintech lender NeoGrowth launches accelerator enterprise mortgage

    NEW DELHI: NeoGrowth, an MSME-focused fintech lender leveraging the digital funds ecosystem, has launched a enterprise mortgage providing, NeoGrowth Accelerator. The firm lately kickstarted its MSME competition and shall be enterprise a number of actions to have a good time the spirit of India’s small enterprise homeowners. The firm can be reside on the Account Aggregator framework to strengthen digital lending for MSME debtors.

    NeoGrowth Accelerator is a collateral-free time period mortgage of as much as ₹20 lakh for the underserved MSME section comprising producers, distributors, merchants, sellers, and repair suppliers. The product is designed to satisfy the working capital necessities of GST-registered MSMEs based mostly on their money flows. 

    NeoGrowth follows data-based decision-making and leverages scorecards and algorithms for buyer evaluation, mentioned the agency in a press launch.

    “Our goal has been to reinforce credit score penetration amongst small companies with seamless entry to loans…Accelerator loans provide two handy and fast choices for companies, with minimal paperwork to assist our debtors scale up their enterprise simply. To make the mortgage journey less complicated for our MSME prospects, we have now built-in the Account Aggregator framework throughout our processes,” mentioned Arun Nayyar, whole-time director & CEO, NeoGrowth.

    Through the Account Aggregator (AA) ecosystem, NeoGrowth goals to deal with the MSME credit score hole in India. The firm integrates account aggregator info, credit score bureau scores, proprietary information, and different inner metrics to totally assess potential debtors and supply loans that leverage the digital funds ecosystem. MSME prospects will now be capable to share all their banking info in a consolidated dashboard and avail credit score in a seamless method, mentioned the agency.

    Subscribe to Mint Newsletters

    * Enter a legitimate electronic mail

    * Thank you for subscribing to our e-newsletter.

    First article

  • Pandemic-driven surge of contactless funds set to proceed

    “One in each six face-to-face transactions is contactless in India,” stated Ramakrishnan Gopalan, vice-president and head of merchandise and options, India and South Asia, Visa.

    Visa isn’t the one one experiencing such a progress.

    Moreover, contactless funds embrace far more than debit and bank cards designed to take away contact from offline funds.

    View Full Image

    Mint 

    Contactless funds embrace all types of cashless transactions that don’t require customers to swipe playing cards and enter a 4-digit pin at point-of-sale (POS) terminals.

    These transactions might be made utilizing NFC-enabled playing cards and NFC-enabled cellular wallets, reminiscent of Samsung Pay. Even funds made by scanning QR codes are contactless funds.

    According to Pine Labs, the variety of total contactless transactions in India grew 171.9% and by 200.4% in rupee adjusted phrases between May 2021 and May 2022.

    QR Scan and Pay by way of Dynamic QR has seen the very best enhance of 245% in rupee adjusted phrases and 231% by way of the variety of transactions.

    Payments firm Fiserv, too, recorded a 300% progress in UPI funds and 90% progress in contactless card funds during the last 12 months in India.

    “The wide-scale adoption by consumers has major banks expanding their contactless product portfolio through virtual and contactless cards,” stated Rishi Chhabra, nation head and basic supervisor, India and Sri Lanka, Fiserv.

    Gopalan attributed the expansion in contactless funds to the finance ministry’s pointers to problem extra credit score and debit playing cards that assist it and the Reserve Bank of India’s (RBI’s) resolution to extend the restrict for such transactions to ₹5,000 in January 2021 from ₹2,000 beforehand.

    Most business specialists agree. “The widespread availability of contactless POS machines and elevating of the restrict has pushed a big progress in contactless funds,” stated Ashutosh Sharma, vice-president and analysis director at Forrester Research.

    The greatest driver is ease and the most important stumbling block is individuals’s concern of safety of cost, Sharma stated. “In any case, pandemic or not, this progress will proceed to stay,” he added.

    The Visa report additional exhibits that contactless card funds obtained probably the most traction in quick-service eating places, meals and grocery, film halls, and pharmacies.

    Bengaluru, the nationwide capital area, Hyderabad, Mumbai, and Chennai noticed the very best variety of contactless transactions. “This has seen extra traction in shops and gasoline stations the place there are queues and longer cost time means individuals have to attend longer within the queues,” Gopalan stated.

    Even although these funds don’t require customers to enter a pin, Gopalan vouches for his or her safety. He explains that contactless playing cards use microprocessor chips and encryption to safe 2-way communication. This makes cloning the cardboard inconceivable.

    For banks and corporations like Visa, contactless funds additionally assist in constructing a loyal buyer base.

    “The key advantage of contactless is that it builds stickiness. We have information from India and different markets that exhibits that contactless drives repetitive behaviour and results in loyalty for banks and corporations like us,” added Gopalan.

    Gopalan stated that growing the ceiling can even drive adoption.

    “As a community, we really feel there may be nonetheless a number of room to develop throughout the ₹5,000 restrict whereas we work with RBI to extend the restrict,” he added.

    Sharma believes the most important risk to the bank card as an instrument is coming from rising UPI adoption and making funds by way of UPI on credit score. “It can also be a chance as nicely; the best approach to make this cost can be to have UPI-linked bank cards. This will mix the convenience of UPI with the worth that the bank cards ecosystem affords,” Sharma stated. This will imply making a unique kind of contactless cost, by way of a QR code scan, he stated.

    Contactless cost is rising in India, however there may be nonetheless a protracted approach to go. In markets reminiscent of Singapore and Australia, contactless funds account for 70-80% of transactions, based on Gopalan.

    Subscribe to Mint Newsletters

    * Enter a legitimate e mail

    * Thank you for subscribing to our publication.

  • RBI permits UPI cost by way of bank cards. What does it imply for you? 

    To deepen the utilization of digital funds by way of UPI (Unified Payments Interface), the Reserve Bank of India proposed to permit the linking of bank cards to the UPI platform. To begin with, solely Rupay bank cards shall be enabled with this facility. Industry consultants consider that this transfer by the RBI will widen the scope of UPI funds considerably. The facility could also be made out there for Mastercard and Visa playing cards, going forward. 

    “The transfer by RBI simplifies the cost course of to shoppers as a result of it permits varied cost strategies from a single cost app,” stated Adhil Shetty, CEO, of BankBazaar.com. When you might have a number of accounts linked with one UPI, you possibly can choose the account from which you need to make every cost. You can profit from the curiosity free interval in your credit score card-linked UPI transactions, offered you pay your bank card payments on time. This interval can stretch as much as 6 weeks. You additionally typically get cashbacks or reward factors on bank card spending and this may increasingly apply to UPI-linked bank card spending additionally. Note that the power of linking the Rupay bank card to the UPI could be out there solely after the required infrastructure developments are made.  

    P2P transactions  

    UPI transactions are divided into two classes – person-to-merchant (P2M) and peer-to-peer (P2P). As the names recommend, the previous contains cash transfers between folks and retailers (funds), whereas the latter offers with the cash switch between folks. So far, bank card funds are considerably used just for funds to retailers and never for inter-bank cash switch between two folks. It is unclear whether or not such P2P UPI transfers could be executed by a credit score card-linked UPI cost underneath the RBI proposals.  “Merchant UPI IDs are totally different from private UPI IDs, So, it isn’t tough to be distinguish between P2P funds and P2M funds. Having stated that, it is usually technically potential to permit P2P transactions by UPI by way of bank cards,” added Shetty from BankBazaar.com 

    Anuj Kacker, Co-Founder and COO, Freo has one other view. “There can also be a chance that P2P transactions shall be locked and solely P2M funds be allowed utilizing a bank card by UPI. But we now have to attend for the ultimate doc from NPCI (National Payments Corporation of India) on this regard,” Kacker added. Nevertheless, customers have to be cautious and restrict themselves from over-utilising the leverage provided by bank cards. 

    Subscribe to Mint Newsletters

    * Enter a legitimate electronic mail

    * Thank you for subscribing to our e-newsletter.