Credit Card Transactions on UPI Hit ₹10,000 Crore, NPCI CEO Reports
Credit card transactions via UPI have reached ₹10,000 crore, with ICICI Bank leading in pre-approved loans. Learn about the growth in credit lines and banks' strategies to attract new customers.
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In a notable development in the Indian financial landscape, credit card transactions via the Unified Payments Interface (UPI) have surged to a remarkable ₹10,000 crore. This milestone underscores the growing integration of credit services within the UPI ecosystem, reflecting a significant shift in how consumers manage and utilize credit.
According to Dilip Asbe, CEO of the National Payments Corporation of India (NPCI), this achievement highlights the expanding role of UPI in facilitating credit transactions. Of this substantial sum, between ₹100-200 crore has been specifically spent through credit lines, marking a progressive trend in the adoption of credit facilities through digital payment platforms.
ICICI Bank has emerged as a leader in this domain, spearheading the disbursement of pre-approved loans. This positions ICICI Bank at the forefront of the credit expansion within the UPI framework, demonstrating its robust strategy and effective utilization of digital payment systems to offer credit.
Despite the impressive figures, the growth in credit lines through UPI has been gradual. To address this, banks are implementing innovative approaches to attract new customers. One such strategy involves offering small loans secured against fixed deposits. This initiative is aimed at providing users with accessible credit options while leveraging their existing deposits to facilitate new financial opportunities.
The integration of credit card transactions with UPI represents a transformative step in the digital payments ecosystem. It not only enhances the convenience of credit usage but also reflects a broader trend towards digital financial solutions. As banks continue to explore and expand these offerings, the landscape of consumer credit is set to evolve further, potentially increasing financial inclusion and flexibility for users across the country.
With these advancements, the future of credit transactions through UPI looks promising, paving the way for more seamless and accessible financial services for all.
