Categories: Banking

No Charge for RuPay credit card use on UPI for transaction up to Rs 2,000: NPCI

The National Payments Corporation of India (NPCI) has said there will be no charge for RuPay credit card use on Unified Payments Interface (UPI) for transactions up to 2,000. RuPay credit card has been operational for the last four years, and all major banks are enabled and are issuing incremental cards for both commercial and retail segments.

Bank Maha Pack includes Live Batches, Test Series, Video Lectures & eBooks

About The Recent Changes:

RBI has approved linking of RuPay Credit Cards to UPI, which will provide a seamless, digitally enabled credit card lifecycle experience for the customers. Customers will benefit from the ease and the increased opportunity to use their credit cards. Merchants will benefit from the increase in consumption by being part of the credit ecosystem with acceptance of credit cards using asset lite QR codes. Credit cards can now be linked to a Virtual Payment Address (VPA) i.e., UPI ID (credit card number cannot be part of this), thus directly enabling safe, and secure payment transactions.

What The NPCI Said:

“During credit card on-boarding on the apps, the device binding and UPI PIN setting process shall include and be construed as customer consent for credit card enablement for all types of transactions,” a recent NPCI circular said. For international transaction enablement, the existing process from the app will apply to credit cards too, the circular dated October 4 said.

Nil Merchant Discount Rate (MDR) would apply for this category up to the transaction amount less than and equal to 2,000, it noted. Nil MDR (no interchange, PSP & app provider charges) shall apply for this category up to the transaction amount less than and equal to 2,000, said the circular. Merchant Discount Rate (MDR) is the cost paid by a merchant to a bank for accepting payment from their customers via credit or debit cards every time a card is used for payments in their stores.

Credit Card Linking:

Reserve Bank of India (RBI) Governor Shaktikanta Das on 21 September launched the Rupay credit card on Unified Payments Interface (UPI) network, a move that experts believe has the potential to expand the market for credit by almost five times. Currently, Union Bank, Punjab National Bank and Canara Bank are issuing credit cards.

To enable linking of credit card on UPI, the ecosystem will have to enhance their tech platforms. While the issuers will enable linking of credit card accounts at customer’s end, the acquirers will enable the acceptance of linked credit card at merchant’s end. The initial phase of operationalisation will provide learnings and critical inputs, that can be used to fine tune the proposition in later phases to scale up the usage, the circular said.

Piyush Shukla

Recent Posts

GK Quiz on the Chenab Rail Bridge, Questions and Answers

The Chenab Rail Bridge is a world-famous railway bridge built in Jammu and Kashmir, India.…

53 mins ago

Chenab Rail Bridge: Team Behind the Construction of the Bridge

The Chenab Rail Bridge in Jammu and Kashmir is the world's highest railway arch bridge.…

2 hours ago

Rohini Gram Panchayat Wins Gold in National e-Governance Awards 2025

In a momentous achievement for rural digital transformation, Rohini Gram Panchayat in Shirpur taluka, Dhule…

2 hours ago

Ladakh Reservation and Language Regulations Promulgated by President

In a landmark move for the Union Territory of Ladakh, President Droupadi Murmu has promulgated…

2 hours ago

Tamil Nadu Declares Dhanushkodi as Greater Flamingo Sanctuary

On World Environment Day (June 5, 2025), the Tamil Nadu government officially declared a Greater…

2 hours ago

Army Chief Upendra Dwivedi Inaugurates Ibex Tarana 88.4 FM in Uttarakhand

In a key strategic visit to India’s northern frontier, Chief of Army Staff General Upendra…

3 hours ago