Hi, how much cash do you have in your wallet? No nothing I, think 10 or 20 bucks. That's it. Thanks to upi and now with rupe credit cards. Getting linked to upi india will now become a full-fledged cashless economy, videos and how it will impact the overall economy special thanks to cred for sponsoring this video more about them later before, diving into this important announcement, let's rewind a little bit prior to 2016 india's payment landscape was a little challenging.
More than 190 million people did not have bank accounts, and the existing payment system, like any fd and rtgs, had their own set of challenges. Rtgs was for large amounts and neft work with early batches, and both these systems required copper, some beneficiary details, but then enters upi unify payments. Interface, upi linked multiple bank accounts into one app offering instant transactions without the need of the other person's bank. Details fast forward to 2023 ups taken over the country, and it is projected that by 2026 we will see more than one billion daily upi transactions. Upi is for everyone from the sari vendor to the biggest electronic shop in india. The new feature of roof pick red cards on upi will basically bring rupee india's own card payment, network and upi together. This means that if you have a rupee based credit card, then you can use it in the upi technology. It makes sense for the central bank to connect rupee india's own card payment network with the unified payments interface. So now, with the rupee credit card, you pick pay for the smallest amounts with your credit card, without carrying it physically now, small merchants will be able to accept credit card payments with just their qr code without the need of any kind machine of credit card payment.
Acceptance, this is a very big step towards india's vision of becoming a cashless economy. Not only will these small merchants accept rupee credit cards because of the qr code. They will also prefer it overs visa and mastercard credit cards, because rupay has a 0 mbr merchant discount rate is the fee that seller pays to the bank for processing every digital transaction. Now this ndr varies for each payment mode for debit transactions up to 2000 rupees. It is 0.4 percent for debit transactions above 2000 rupees, it is 0.9 percent for visa and martial. This can go anywhere between one to three percent, but interestingly, upi and rupay have a zero merchant discounted a 7d earthquake examples foreign's past network, which in june 2023 process transactions worth 14.75, lakh crore transactions. It is very clear: rbi wants to boost rupees problems in the credit card industry or foreign without spending a lot of money.
I can just add the virtual payment address of this rupee credit card on my correct scan and pay feature upi transaction today. These are all for micro transactions shopping. Yes, so you will get cashbacks and rewards from a credit card company. Next you get special discounts with online and offline vendors and last may for every transaction. Most credit cards give you points. It gives me 12 points for every 200, rupees or in points is premium benefits. The best part is, you, do not have to install any other new app for this credit card. Add this card on your credit app and it will automatically identify all the unique offers available for that particular card and then last benefit is something that is very close to my heart, july end was a dreadful time for me because it was the tax filing month or job bank statement manga. It was more than 100 pages long, just because of those daily small upi transactions, very big incentive for people. Like me to start using the super credit card, because I can dedicate this card for all my small upi transactions, this way I can pick letter. My bank statement making my and my singers like extremely easy. They will send me timely reminders, so that I always pay the full bill on time every time now these were some of the benefits of using credit card on upi, but the ease and convenience of upi will increase a lot of credit card users in the country which will also have a massive impact on the economy?
Now, let's take a look at two countries: america the shredded buggyback and india are developing nation, which is just discovered the power of grenade, while an average american has more than three credit cards up until a decade ago. Indians did not even have a single one, but now times are changing according to the rbi in 2022 there were nearly 62 million credit card users in india a 270 increase from a decade ago the credit card transaction volume has also risen to a staggering 15 trillion rupees up from just 2 trillion in 2012 credit is like a double edged sword base if used wisely it can be a powerful tool to grow individuals and the entire economy so while a credit card has a lot of benefits make sure to never spend more than 30 percent of your credit limit so that your credit score is not affected and do not buy things that you cannot afford just because you have missed your credit line things like a phone a pair of sneakers or gadgets should always be a subset of a disposable income and not your credit limit
credit card that's all for today guys goodbye and see you guys in the next one
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