UPI Credit Card : The demand for credit card facility of UPI platform ofNational Payment Corporation of India ( NPCI ) has increased rapidly. Through this, transactions worth about Rs 10,000 crore are being done in a month. Credit card facility started in November 2022. Under this, a user can link his credit card to the app. With this, all monthly payments are added to the credit card bill. Apart from this, loans worth Rs 200 crore have been given in a month through pre-approved loan facility on UPI.

what does it mean

According to NPCI's Chief Executive Officer (CEO) and Managing Director Dilip Asbe, the pre-approved loan facility on UPI (Unified Payment Interface) is also gaining momentum and up to Rs 200 crore is being distributed through it every month. Asbe said that ICICI Bank is at the forefront when it comes to the pre-approved 'credit limit' facility on UPI. About half a dozen banks have started this facility for their customers. This has come to light at a time when concerns are being raised over the rapid increase in loans considered unsecured like credit cards and personal loans.

UPI is a widely used platform. It saw 46.6 crore transactions in July. He also said that the central bank digital currency (CBDC) is not intended to compete with UPI. CBDC has many features that will prove very useful for India.

Demand for personal loans raised concerns

The way the demand for personal loans has increased in the recent past, it has already increased RBI's concerns. The highest number of credit card usage and default cases have been reported in personal loans. RBI feels that people are taking more credit cards and personal loans than necessary to fulfill their hobbies and needs, which is increasing the risk.