Should You Use Your RuPay Credit Card for UPI Payments? The Pros and Cons

After the RBI’s approval, RuPay credit cards can be used for UPI payments. Furthermore, you can also earn reward points and privileges on your transactions. But, should you use these cards for UPI payments? Read on to know more.

Making UPI payments via RuPay credit cards
  • RBI has allowed individuals to link their RuPay credit cards to their respective UPI IDs and subsequently use them for multiple transactions.
  • Similarly, RuPay credit cards can be used for UPI payments and get you reward points and other benefits on each transaction
  • There is, however, the fear of overspending and falling into a credit card debt
  • While using the UPI-linked credit card, know its pitfalls and avoid them for efficient usage

2022 was a major year in the credit card space as the Reserve Bank of India (RBI) allowed authorised banks to facilitate UPI-linked credit cards. The facility was allowed for RuPay credit cards only after which many banks and financial institutions started offering the facility on their UPI IDs.

Thus, if you too own a RuPay credit card, you can link it with your UPI ID and use it for seamless transactions. But should you actually do so?

There are both pros and cons to making UPI payments through RuPay credit cards. Let’s delve deeper.


  • Ease of Payment 

Primarily, making payments would become easier with UPI-linked credit cards. Small merchants who don’t have swiping machines can allow payments through QR codes making it easier to transact digitally.

  • Reward Points

Credit cards have a rewards program that allows reward points every time you spend on the card. With UPI-linked credit cards, you can maximise your reward earnings and redeem them for attractive gifts, vouchers, and even credit card bill payments.

  • Cashback and Discounts

You might be able to avail of attractive cashback and discounts at partner merchants. This would help in saving on every transaction.

  • Credit History

By paying your credit card bill on time, you can build up a good credit score. Plus, owning a credit card builds your credit history.

Also Read – Know how Rupay differs from Visa and Mastercard


  • Spending limit

UPI transactions are permitted for up to ₹1 lakh per day. So, there’s a spending limit that you need to know about. Moreover, you can use the UPI-enabled RuPay credit cards only for merchant transactions. However, you cannot remit money to individuals.

  • Overspending 

Since you transact on credit, you might overspend and rack up an unaffordable credit card bill if you don’t use the card wisely.

  • Debt Burden 

Credit cards involve very high interest rates. If the dues are not cleared on time, the interest accumulates and increases your outstanding liability. Hence, you might fall into a debt trap if you are unable to clear your dues on time.

Click here to read the latest articles on Financial Planning 

Also Read – Know how to apply for Rupay credit cards

The Bottom Line

So, assess the pros and cons of using RuPay credit cards for UPI transactions. While their offered benefits would give you extra privileges on each spend, you should be careful about overspending and racking up a huge bill that you might be unable to pay. Remember, the more the delay in paying, the more the debt burden. 

Understand the pitfalls and use the card wisely to minimise the drawbacks and maximise the advantages of the card.



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