No charges on RuPay credit card for transactions of less than Rs 2000

6 Oct 2022 , 08:26 AM

Following the RBI’s directive, there would be no fee for using a RuPay credit card via the Unified Payments Interface (UPI) for transactions up to Rs2,000, according to the National Payments Corporation of India.

The circular from October 4 stated that the device binding and UPI PIN establishing process during credit card on-boarding on the apps “must include and be understood as customer authorization for credit card enabling for all types of transactions.”

Since RuPay’s credit card has been in use for four years, all major banks have enabled it and are releasing new cards for both the business and retail markets.

The NPCI stated in the circular that the current procedure from the app will apply to credit cards as well for foreign transaction enablement.

It stated that there would be no Merchant Discount Rate (MDR) for this category up to a transaction amount of Rs2,000 or less.

It stated that “this circular is effective as of the date of issuance” and urged members to take note and inform the appropriate parties of its contents.

According to the circular, UPI apps would guarantee total transparency on purchases made by a consumer using a credit card, including conveniently available transaction histories and a clearly visible user interface while making the payment.

According to the circular, credit card issuers and apps will notify or communicate with the client as necessary during each stage of the credit card lifecycle for such transactions.

The action will encourage wider acceptance of RuPay cards and promote the in-house payment system.

Additionally, it said that an add-on card must have a different mobile number associated to it.

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