Introduction: From Cash → UPI → Credit on UPI
When the Unified Payments Interface (UPI) launched in 2016, it revolutionised person-to-person and person-to-merchant payments in India. Within eight years, UPI crossed 18 billion transactions a month (October 2025 NPCI data). But until 2022, one thing was missing — credit.
On 7 September 2022, RBI Governor Shaktikanta Das announced the most significant expansion of UPI since its inception: linking pre-approved credit lines directly to UPI IDs. The pilot began in September 2022 with five banks. By November 2025, more than 38 banks and 14 third-party apps offer “Credit Line on UPI” to over 22 crore Indians. This is no longer a pilot — it is mainstream digital credit.
What exactly is “Credit on UPI”?
Credit on UPI (official NPCI terminology: Credit Line on UPI) allows a pre-sanctioned credit limit from a bank or NBFC to be linked to your existing UPI ID (@oksbi, @axl, @icici, @ptaxis, etc.). When you scan a merchant QR code, you can choose to pay from:
- Savings account
- Wallet
- Credit card (already possible)
- Credit Line (new)
The money is debited from the credit limit, not your bank balance. You repay later — in full or in EMIs — exactly like an overdraft or revolving credit card, but with the speed and reach of UPI.
Key points that make it different from credit cards:
- No plastic card required
- No separate app or login
- Works on every UPI QR in India (18+ crore merchants)
- Separate UPI PIN (mandated by RBI)
- Merchant payments only (no P2P allowed)
- Interest charged only on utilised amount and duration
Timeline of Credit on UPI (2022–2025)
Types of Credit on UPI Available Today
Step-by-Step: How to Activate Credit on UPI (2025)
Through Bank Internet Banking / Mobile Banking (Most common)
- Log in to your bank’s app (SBI YONO, HDFC, Axis, ICICI iMobile, Kotak, etc.).
- Go to “Cards” → “Credit Line on UPI” or “Pre-approved Credit Line”.
- Check pre-approved offer (instant for most salaried accounts).
- Accept T&C → Set 6-digit UPI PIN (must be different from debit card/UPI PIN).
- Choose your existing UPI ID or create new.
- Done — the credit line now appears in PhonePe, GPay, Paytm, BHIM, etc.
Through Third-Party Apps (PhonePe, Google Pay, Paytm)
- Open PhonePe → “Credit” section → “Credit Line”.
- Choose a partner bank/NBFC (Axis-Fibe, HDFC-PayZapp, ICICI-InstaCredit, etc.).
- Complete video KYC if required.
- Get instant sanction (30 seconds to 5 minutes).
- Link to your @phonepe or any VPA.
Secured Credit Line
- Create FD in a bank app (minimum ₹10,000 in most banks).
- Instantly get 90–95% as a credit line.
- Link to UPI — zero documentation.
Complete List of Banks & Apps Supporting Credit on UPI (November 2025)
Interest Rates Comparison (Nov 2025)
Advantages of Credit on UPI Over Traditional Credit Cards
Safety & Regulatory Safeguards
- Mandatory separate 6-digit UPI PIN for credit transactions.
- Transactions only to merchant MCCs (no P2P, no ATM withdrawal).
- Daily transaction limit ₹2 lakh (same as debit UPI).
- Real-time SMS + app notification for every credit transaction.
- 24×7 Online Dispute Resolution (ODR) inside UPI apps.
- CIBIL reporting every month — good behaviour improves score faster.
Real-Life Use Cases (2025)
- End-of-month grocery bill when salary is delayed → Pay via credit line, repay when salary comes.
- Booking flight tickets on MakeMyTrip → Choose credit line, convert to 6-month EMI instantly.
- Small merchant buying inventory → Use business credit line on UPI, repay in 15 days interest-free.
- FD holder earning 7.5% but needs money → Take 90% credit at 8.5%, keep FD intact.
- Freelancer with irregular income → Use BNPL products (Slice, Uni) for 30–45 days zero interest.
Risks & Responsible Usage Tips
- Interest rates are higher than personal loans (avoid long revolving).
- Missing EMI hurts CIBIL badly (reported monthly).
- Multiple credit lines = higher total exposure → banks may reduce limits.
- Always check “available credit” before scanning QR (app shows clearly).
- Never share the dedicated UPI PIN.
Future Roadmap (2026–2028)
NPCI & RBI discussions (as of Nov 2025):
- Allowing limited P2P for emergency (capped ₹10,000/month).
- UPI Credit Score — a new score based only on UPI credit behaviour.
- Integration with Account Aggregator for faster sanctions.
- International UPI acceptance for Indian credit lines (Singapore, UAE experimenting).
- Credit on UPI for NRIs (expected 2026).
Credit on UPI is arguably the biggest financial inclusion story of this decade. In just three years it has taken formal credit to Tier-3/4 towns and first-time borrowers who never qualified for credit cards. With zero-cost EMI options, FD-backed safe products, and instant activation, it is making “buy now, pay later” responsible and mainstream.
If you have a bank account and a decent CIBIL score (or even an FD), you probably already have a pre-approved credit line waiting in your banking app. Open it today — the next time your salary is delayed, your UPI QR will still work.
Ru Pay with Credit Card on UPI: Short Summary
Introduction: A Game-Changer in Digital Credit
In the evolving landscape of India's digital payments, RuPay Credit Card on UPI stands out as a seamless fusion of convenience, rewards, and accessibility. Launched in 2022 by the National Payments Corporation of India (NPCI) and approved by the Reserve Bank of India (RBI), this feature allows RuPay credit cardholders to link their cards directly to UPI apps for instant, QR-code-based payments. No more fumbling for physical cards or POS machines—scan, pay, and earn rewards on the go.
As of November 2025, UPI-linked RuPay credit card transactions account for nearly 40% of all credit card volumes in India, up from just 10% at the end of FY2024. RuPay's overall credit card market share has surged to 18%, challenging global giants like Visa and Mastercard. With over 11.33 crore active credit cards in the country and UPI processing 90% of retail digital payments, this integration is democratizing credit for millions, especially in Tier-2/3 cities where small merchants dominate. It's not just a payment method; it's a catalyst for financial inclusion, blending UPI's ubiquity with credit's flexibility.
What is a RuPay Credit Card on UPI?
RuPay Credit Card on UPI enables users to leverage their existing RuPay credit cards for UPI transactions. Unlike traditional credit lines (which are overdraft-like facilities), this is your actual credit card linked to a UPI ID, offering revolving credit, interest-free periods, and reward points. Key differentiator: It's exclusive to RuPay cards, as mandated by RBI in June 2022, due to NPCI's ownership of the RuPay network.
How Does It Work? Step-by-Step Activation and Usage?
Getting started is straightforward, taking under 5 minutes. Here's the process:
Activation Steps
Eligibility Check: Ensure you have a RuPay credit card from a participating bank (e.g., HDFC, SBI, ICICI). Good credit score (700+) helps for new applicants.
Choose UPI App: Download/open BHIM, PhonePe, Google Pay, Paytm, or others (full list below).
Link Card:
- Go to "Add Payment Method" or "Link Credit Card."
- Enter your RuPay card's last 6 digits, expiry date, and CVV.
- Verify with your credit card's OTP/PIN.
- Set a separate 4–6-digit UPI PIN for credit transactions (RBI-mandated for security).
Confirmation: Your card appears as a payment option (e.g., "HDFC RuPay CC").
Making a Payment
- Scan a merchant's UPI QR code.
- Select "RuPay Credit Card" from options.
- Enter your credit UPI PIN.
- Transaction completes instantly; earn rewards if applicable.
Pro Tip: View card details (16-digit number, CVV) in the UPI app's "My Cards" section for e-commerce use.
Repayment and Management
Billing: Same as your physical card—statement cycle, minimum due, interest (18-42% p.a. if unpaid).
EMI Conversion: Available on many cards/apps for purchases > ₹2,500.
Tracking: Real-time notifications via SMS/app; monitor via bank app or UPI dashboard.
Disputes: Raise via UPI's ODR portal (UPIHelp) within 30 days.
Transaction Limits (NPCI Standards):
- Per transaction: ₹1 lakh (domestic).
- Daily: ₹2 lakh.
- Monthly: Tied to card limit (typically ₹50,000-₹10 lakh).
Key Benefits: Why Choose RuPay CC on UPI?
This integration isn't just convenient—it's rewarding and cost-effective, especially post-November 2025 NPCI guidelines.
Real Impact: Small merchants love the low MDR (charged only > ₹2,000), encouraging credit acceptance at low-value transactions (< ₹1,000). Users report 20-30% higher reward earnings due to UPI's everyday use.
Why Banks Aren't Showing Separate Limits for International (Visa/Mastercard) and RuPay Credit Cards on UPI
As of November 25, 2025, the integration of credit cards with UPI in India—particularly RuPay Credit Cards on UPI—has grown significantly, with transaction volumes doubling year-over-year to over ₹63,000 crore in the first seven months of FY25. However, a common user frustration is the lack of separate, clearly displayed limits for "international" cards (Visa or Mastercard) versus RuPay cards when linked to UPI apps. This isn't a bug or oversight but stems from regulatory, operational, and product-specific factors. Below, I'll break it down step by step, based on NPCI guidelines, bank policies, and industry practices.
Understanding the Context: RuPay vs. International Cards on UPI
RuPay Cards: These are domestic cards issued by NPCI (National Payments Corporation of India). Since RBI's June 2022 approval, RuPay credit cards can be directly linked to UPI apps (e.g., PhonePe, Google Pay, BHIM) for seamless merchant payments. This feature is exclusive to RuPay due to NPCI's ownership, promoting financial inclusion and reducing reliance on foreign networks.
International Cards (Visa/Mastercard): These cannot be directly linked to UPI. To enable UPI-like payments, banks issue a virtual RuPay credit card as an add-on to your existing Visa/Mastercard. This virtual card shares the same underlying credit limit as your primary card, allowing UPI functionality without a separate physical RuPay card.
Key Issue: When you link either (direct RuPay or virtual RuPay tied to international), the UPI app shows a single "available credit" or "transaction limit" view. There's no split display because the virtual RuPay isn't a standalone product—it's an extension of your main card.
This setup is confirmed in bank FAQs: For instance, Federal Bank explicitly states that the virtual RuPay card is "issued with a shared limit with the existing Visa or Mastercard credit cards." Similarly, IDFC FIRST Bank notes that UPI limits are "subject to issuer-specific limits based on your credit profile," without separate breakdowns.
Regulatory Reasons: Unified Limits for Risk Management and Compliance
NPCI Guidelines: The transaction limit for any RuPay Credit Card on UPI is capped at the least of:
- NPCI's daily UPI limit: ₹1 lakh per transaction/day (₹2 lakh for specific merchant categories like insurance), with no cap on the number of transactions.
- Your card's overall credit limit.
- Bank-specific risk-based limits (e.g., SBI sets ₹5,000 for the first 24 hours post-linking).
- User-set spending controls.
NPCI doesn't mandate separate displays because UPI treats all linked RuPay instruments uniformly for security and fraud prevention. Displaying split limits could confuse users and complicate real-time risk assessments. As Google Pay's help page explains, "For RuPay-on-UPI transactions, the card issuing bank manages the limit... credit limits put in place by the card issuing bank with their risk management framework."
RBI's Vision: RBI promotes a "domestic, open, and multilateral system" via RuPay-UPI to minimize foreign dependency. Separate international/RuPay limits aren't required because UPI is primarily domestic—international use (e.g., via RuPay-JCB tie-ups) is limited and doesn't alter the shared domestic limit. For Visa/Mastercard users, the virtual RuPay is a workaround, not a segregated product, so banks avoid dual displays to comply with RBI's emphasis on simplified, transparent credit exposure.
Shared Limit Mandate: When a virtual RuPay is issued (e.g., by HDFC, Kotak, YES, or Federal Bank), it explicitly shares the credit limit with your primary international card. This prevents over-leveraging—e.g., if your Visa limit is ₹5 lakh, the virtual RuPay draws from the same pool. Banks like ICICI and Axis confirm this in their UPI FAQs, showing a unified "available credit" to reflect the holistic limit.
Operational and Technical Reasons: Simplicity in UPI Apps
UPI App Design: Apps like PhonePe or Paytm display limits based on the linked instrument's metadata, not card network (Visa vs. RuPay). Since the virtual RuPay uses your primary card's backend, the app pulls a single limit from the bank's API. Customizing displays for "international" vs. "RuPay" would require complex backend changes, which NPCI hasn't prioritized for a feature still scaling (23 banks live as of now).
Bank-Side Aggregation: Banks aggregate limits to avoid errors. For example, Kotak Mahindra Bank's guide states RuPay UPI limits are "specific daily limits" tied to the card's overall profile, without network splits. This reduces support queries—users see one number (e.g., "₹4,50,000 available") instead of juggling two.
No Separate International UPI Limits: Pure international cards aren't UPI-eligible, so there's no "international limit" to display separately. Any international spend (e.g., abroad via Visa) uses the shared limit but routes outside UPI, with forex fees (3-3.5%). RuPay's limited global acceptance (e.g., UAE/Singapore pilots) doesn't trigger split views either.
User Impact: What You See vs. What's Happening Behind the Scenes
Real-User Feedback: On forums like Reddit, users note RuPay cards have "lesser rewards, no international payment," but limit display isn't a frequent complaint—focus is on acceptance. X (formerly Twitter) searches yield no recent posts on this exact issue, suggesting it's not widespread or is resolved via bank apps.
How to Check or Request More Transparency?
Via Bank App: Log into your bank's portal (e.g., HDFC NetBanking > Cards > UPI Linked) for detailed breakdowns. Some (like SBI) show "UPI-specific controls" separately from overall limits.
Contact Bank: Request a limit increase or split view—e.g., Airtel suggests calling for UPI hikes based on credit profile. Processing is free; approval takes 1-3 days.
UPI Apps: Enable notifications for real-time "available balance" alerts. Apps like Cred or Groww offer aggregated views across cards.
Future Changes? With UPI's global push (e.g., NRI linking), NPCI may introduce granular displays by 2026. For now, monitor RBI/NPCI circulars for updates.
In summary, the unified display simplifies compliance, risk control, and user experience in a shared-limit ecosystem. If this doesn't match your specific bank (e.g., HDFC vs. SBI), share details for tailored advice—limits can vary slightly by issuer. For the latest, check NPCI's RuPay portal or your bank's UPI FAQ.
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