SBI Cards, One 97 Communications climb after RBI proposes to link credit cards to UPI

SBI Cards and Payment Services and One 97 Communications rose by 1.67% to 2.59% after the Reserve Bank of India (RBI) today allowed payment from Rupay credit cards via UPI.

SBI Cards and Payment Services gained 2.59% to Rs 784.10 and One 97 Communications, the owner of PayTM, rose 1.67% to Rs 627.50.

Unified Payments Interface (UPI) has become the most inclusive mode of payment in India. Currently, over 26 crore unique users and 5 crore merchants are onboarded on the UPI platform. In May 2022 alone, 594.63 crore transactions amounting to Rs 10.40 lakh crore were processed through UPI. UPI currently facilitates transactions by linking savings / current accounts through debit cards of users.

The interoperability of Prepaid Payment Instruments (PPI) has also facilitated access of PPIs to the UPI payment system for undertaking transactions.

In order to further deepen the reach and usage, RBI has proposed to allow linking of credit cards to UPI. To start with Rupay credit cards will be enabled with this facility.

This arrangement is expected to provide more avenues and convenience to the customers in making payments through UPI platform. This facility would be available after the required system development is complete. Necessary instructions will be issued to NPCI separately, RBI governor Shaktikanta Das said today.

Meanwhile, RBI also proposed to enhance limit on e-Mandates on cards for recurring payments from Rs 5,000 to Rs 15,000 per recurring payment. Necessary instructions will be issued shortly. This will facilitate payments of larger value like subscriptions, insurance premia, education fee, etc.

One 97 Communications, the parent of Paytm is India's payment super App offering consumers and merchants most comprehensive payment services. Paytm enables commerce for small merchants and distributes various financial services offerings to its consumers and merchants in partnership with financial institutions.

SBI Cards and Payment Services is a non-banking financial company that offers extensive credit card portfolio to individual cardholders and corporate clients.

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