UPI has cemented its position as the cornerstone of India’s digital economy, achieving an unprecedented scale of 20 billion transactions in a single month by mid-2025. As the platform evolves from a facilitator of payments to a comprehensive financial hub, the integration of credit—primarily through RuPay credit cards and the Credit Line on UPI (CLOU)—marks a transformative milestone.
Following our 2025 analysis on expanding CLOU access to NBFCs to broaden the lender base, this latest brief addresses the next critical frontier: network inclusivity. While the previous research focused on who can lend on UPI, the current framework remains a “walled garden” where credit cards can only be linked if they belong to a single domestic network. This excludes approximately 84% to 88% of existing credit card holders who use other authorised networks, preventing them from leveraging their primary credit instruments for UPI-based merchant payments.
Expanding UPI linkage to all authorised card networks—such as Visa and Mastercard—presents an opportunity to unlock a powerful economic multiplier effect. By aligning UPI’s credit functionality with the RBI’s principles of competitive neutrality and consumer choice, India can further democratise formal credit access and enhance market efficiency.
- From Lenders to Networks: How does this brief complete the vision of an open UPI credit ecosystem started in our NBFC study?
- Competitive Neutrality: What are the regulatory requirements to move from a restricted model to a truly open credit-on-UPI landscape?
- Economic Impact: In what ways will network neutrality drive innovation in credit products and support the next phase of India’s Digital Public Infrastructure (DPI)?
This policy brief explores these critical questions, offering a data-driven roadmap for a phased, inclusive expansion that reinforces India’s global leadership in digital finance.
📥 Download the complete brief to access the full analysis and see how it builds upon our previous recommendations for NBFC integration.
