The National Payments Corporation of India (NPCI) has announced groundbreaking advancements for credit accounts on the Unified Payments Interface (UPI). This development, outlined in NPCI/UPI/OC No. 19412023-24, revolutionizes the way users interact with credit cards and pre-sanctioned credit lines via UPI. Read Full Circular below:
NATIONAL PAYMENTS CORPORATION OF INDIA
NPCl/UPI/OC No. 19412023-24 Dated: 29th March 2024
To,
Members – Unified Payments Interface (UPI)
Dear Madam / Sir,
Subject: Introduction of new features for Credit Accounts
Referring to NPCI/2022-23/RuPay/019A and NPCI/UPI/OC No. 171/2023-24, RuPay credit cards and pre-sanctioned credit line can now be linked on UPI, enabling safe and secure payment transactions. This has provided users with the ease and increased opportunity to use their credit cards and pre-sanctioned credit line, and merchants have benefitted from the increase in consumption by being part of the credit ecosystem with acceptance of credit accounts using QR codes. To further enrich the offerings to customers and merchants on credit accounts (RuPay Credit Card on UPI and Credit Line on UPI), the following new features are now introduced:
1. EMI: User shall be able to apply for an EMI facility on the linked credit accounts on UPI app. UPI App shall take UPI PIN as user consent on acceptance of relevant terms & conditions. This shall enable the user to convert their:
i. Past purchases, performed using credit account into EMI through the linked UPI App from transaction history.
ii. Purchases into EMI at the time of making the transaction.
The UPI app shall display the existing EMI’s in the relevant section. Since the EMI shall be termed as loan, the user shall not be allowed to modify / delete the EMI, except the foreclosure, as per terms of the Issuer entity.
2. Credit Account Bill Payment/ Instalment Payment: This shall enable user to make onetime payment or setup UPI AutoPay to pay outstanding credit card account bill/ credit line instalment for self and others using UPI app. To do this,
i. Payer PSP shall create UPI ID for receiving credit account bill/ instalment payment.
ii. UPI App shall provide a view for the user to access the details of linked credit card outstanding bill/ credit line instalment details (minimum amount due, total amount due, bill due date etc).
iii. Issuer bank shall clear the dues in real-time upon receiving payments, and make the enhanced balance available to the user for usage.
3. Limit Management: User shalt be able to accept/ apply for enhancing credit limit from the Issuing entity. This feature shall be used by customer in case of making large purchases, emergencies, small limit for adhoc expenses, festivals, family events, etc. this also provides the issuing bank to start with smaller credit limits, and based on the user’s spending behaviour, the bank may subsequently increase the limit.
With the objective of fulfilling user needs and enhancing the user convenience by providing better control, this functionality shall enable change to credit limits, through UPI Apps, which could be generic or only for a specific time period by entering UPI PIN as explicit consent from the user.
Members are hereby requested to take note of the above and enable the above features by 31st May 2024.
Yours sincerely,
SD/-
Kunal Kalawatia
Chief of Products
