In the presence of Nandan Nilekani, Chairman Infosys and Advisor to NPCI, and Biswamohan Mahapatra, Chairman National Payments Corporation of India (NPCI), RBI Governor Shaktikanta Das launched three key initiatives during the Global Fintech Fest 2022 — RuPay Credit Card on UPI, UPI LITE, and Bharat BillPay Cross-Border Bill Payments.
Governor Das stated that by linking the RuPay Credit Card to UPI, users would have more opportunities to use their credit cards, and retailers will profit from greater consumption by being part of the credit ecosystem by accepting credit cards utilising assets such as QR codes.
RuPay Credit Cards will be connected to a Virtual Financial Address (VPA), also known as a UPI ID, allowing for safe and secure payment transactions. Customers of Punjab National Bank, Union Bank of India, and Indian Bank will be the first to be able to use their RuPay Credit Cards with UPI and the BHIM App.
UPI Lite will enable consumers to conduct low-value transactions more quickly. Users who enable UPI Lite on the BHIM App will be able to conduct small-value transactions in a near-offline mode. It is expected to minimise the debit strain on the core banking system, increasing transaction success rates and improving user experience.
The maximum value of a payment transaction will be Rs 200, and the total limit of UPI Lite balance for an on-device wallet would be Rs 2,000 at any moment. Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India, and Utkarsh Small Finance Bank are among the eight institutions that have implemented the function.
Furthermore, the governor introduced the Bharat BillPay Cross-Border Bill Payments, which would make bill payments easier for persons who live outside of India yet own property in India. The service would allow NRIs to pay utility, water, and telephone bills on behalf of their Indian relatives. Federal Bank, in collaboration with the UAE’s Lulu Exchange, would be the first to accept Bharat BillPay Cross-Border Bill Payments.
According to an NPCI statement, these efforts have the potential to revolutionise the digital payments ecosystem and extend the reach of digital payments to many new consumers across India and internationally, as well as assist in the path of onboarding the next 300 million people on digital payments.