The National Payments Corporation of India (“NPCI”) has introduced the following new features for Credit Accounts, necessitating implementation by UPI members no later than 31st May, 2024. The salient features are delineated as follows:
1. EMI Facility:
• User will be able to apply for an EMI facility on the linked credit accounts on UPI App.
• The UPI App should take the UPI Pin as the user consent on acceptance of relevant terms and conditions.
This will enable the user to convert their:
a. Past purchases performed using credit account into EMI through the linked UPI App from the transaction history;
b. Purchases into EMIs at the time of transaction.
• The UPI App should display the existing EMIs in the relevant section. In recognition of the EMI’s classification as a loan, users shall be precluded from effecting modifications or deletions, save for foreclosure.
2. Credit Account Bill Payment/Instalment Payment:
• This feature will enable the user to make one time 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:
a. Payer PSP has to create UPI ID for receiving credit account bill/installment payment.
b. UPI App has to provide a view for the user to access the details of linked credit card outstanding bill/credit line instalment details.
c. Issuer bank has to create the dues on real time basis upon receiving payments, and make enhanced balance available for the user for usage.
3. Limit Management:
• User should be able to accept/ apply for enhancing credit limit from the issuing entity. This feature will be used by customers in case of making large purchases, emergencies, small limit for adhoc expenses, festivals, family events etc.
• This functionality should also 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.
Please refer to the hyperlink below for a detailed read of the Circular.
Source: National Payments Corporation of India
