Canara Bank, in collaboration with NPCI, has launched the Rupay Credit Card through UPI using the BHIM app. 

With this introduction, all Canara Bank customers can link their active Rupay Credit Card to Unified Payment Interface (UPI) and make merchant payments without the physical use of a card. This is similar to account-based UPI transactions.

 “Customers will benefit from the ease and increased opportunities to use their credit card limits, while merchants without POS machines can receive payments using a credit card from customers having Rupay Credit Card linked to UPI using the most popular payment mode of scan and pay through QR. This will enable small merchants to increase sales turnover and business at low cost,” Canara Bank said in a statement.

Presently, customers with Canara Bank Rupay Credit Card variants - Rupay Classic, Rupay Platinum, and Rupay Select - can link their cards to UPI.

"Canara Bank's RuPay Credit Card on UPI would benefit customers by providing them with more opportunities to use their credit cards," said National Payments Corporation of India (NPCI) managing director and chief executive officer Dilip Asbe. 

“The collaboration between Canara Bank and NPCI will leverage the reach of UPI and the strength of RuPay Credit Card to further boost digital payments in the country,” he added.

The procedure for linking the credit card is similar to the existing account-linking procedure. Customers should select Canara Credit Card during account listing for linking. The transaction limits applicable for UPI transactions shall continue for UPI payments using Rupay Credit Card.

Currently, only merchant payments are allowed using this facility, and person-to-person, card-to-card, or cash-out transactions will not be permitted for UPI payments from Rupay Credit Cards.