The Reserve Bank of India (RBI) has introduced a major upgrade in India’s digital payment ecosystem — UPI Credit on RuPay Credit Cards. This means you can now use your RuPay credit card just like a UPI-linked bank account to make QR code payments across India.
It’s a game-changer for credit card users, small merchants, and digital-savvy consumers. Here’s everything you need to know about how it works, who can use it, and what benefits (and risks) come with it.
What is UPI Credit on RuPay Cards?
UPI Credit on RuPay Cards is a facility that allows you to link your RuPay credit card to your UPI apps (like PhonePe, Google Pay, Paytm) and use it for direct QR code payments at any merchant.
This means:
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No need to carry physical credit cards
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Just scan any UPI QR code and pay using your credit limit
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Works like UPI but money is debited from your credit line, not savings account
Why Did RBI Introduce This Feature?
The goal is to:
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Increase credit card usage among small merchants
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Promote RuPay as a strong domestic payment option
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Encourage digital credit penetration even in rural areas
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Enable seamless credit-based UPI payments without swiping cards or PoS machines
How to Link RuPay Credit Card to UPI
Here’s how you can link your eligible RuPay credit card in a few simple steps:
Step-by-Step:
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Open your UPI app (PhonePe, Paytm, Google Pay, BHIM)
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Go to “Add Payment Method” or “Bank Account”
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Select Credit Card > RuPay
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Choose your bank name (e.g., SBI, HDFC, PNB, Axis)
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Enter last 4 digits of your card
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Verify via OTP
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Set UPI PIN (separate from card PIN)
Once linked, you can now use the card as a UPI payment source.
Banks Currently Offering RuPay-UPI Credit Cards
As of 2025, these major banks offer UPI-enabled RuPay credit cards:
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SBI Card
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HDFC Bank
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Axis Bank
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ICICI Bank
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Punjab National Bank
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Kotak Mahindra Bank
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Bank of Baroda
More banks are adding support each month as UPI usage expands.
Where Can You Use It?
You can use your RuPay-UPI credit card at:
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Any merchant with a UPI QR code (Scan & Pay)
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Grocery stores, kirana shops, petrol pumps, pharmacies
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Online UPI-supported apps (if enabled by merchants)
Note: Peer-to-peer (P2P) payments and wallet transfers are usually not allowed via UPI credit.
Benefits of UPI Credit on RuPay Cards
✅ No need for swipe machines – Just scan any QR code
✅ Reward points & cashback – Just like regular credit card spending
✅ Credit period – Up to 45-50 days free credit period
✅ Secure payments – UPI PIN protected
✅ Encourages small merchant digital acceptance
Things to Keep in Mind
⚠️ Spend responsibly – It’s still credit, not free money
⚠️ Not all merchants may accept credit-based UPI yet
⚠️ P2P and wallet transactions may be restricted
⚠️ Interest charges apply if not paid in full before due date
RuPay Credit vs Traditional UPI – Key Comparison
| Feature | UPI via Bank Account | UPI via RuPay Credit Card |
|---|---|---|
| Source of Funds | Savings Account | Credit Limit |
| Reward Points | No | Yes (Card dependent) |
| Interest-Free Period | No | Yes (up to 50 days) |
| Card Swiping Needed | No | No |
| UPI PIN Needed | Yes | Yes |
Final Words
RBI’s move to allow RuPay credit cards on UPI makes credit more accessible and payments more convenient than ever before. Whether you’re a student, salaried professional, or small business owner, this feature brings the power of credit + UPI speed into your hands.
As UPI continues to grow globally, India is setting a new standard in digital payments — and RuPay is leading that revolution.