No charges on using RuPay credit card for UPI transactions less than ₹2,000


The National Payments Corporation of India (NPCI) in a circular has said unified payments interface (UPI) transactions up to 2,000 for RuPay credit card user won’t be charged.

In its circular dated October 4, the NPCI said that during credit card on-boarding on the apps, the device and the UPI PIN setting process shall include and be construed as customer consent for card enablement for all kinds of transactions.

The NPCI said that for international transaction enablement, the existing process from the app shall apply to the credit cards as well. The organisation, which oversees retail payments and settlements, said that nil merchant discount rate will be applied for the category up to the transaction amount less than or equal to 2,000.

In simple terms, merchant discount rate is actually the cost paid by a merchant to the bank for accepting payment from their customers through credit or debit cards every time it is used for payments in their stores. This rate is expressed in the percentage of the transaction amount.

The NPCI notification stated that the circular is applicable from the issuance date i.e October 4 and urged the members to bring it to the notice of the concerned stakeholders.

Earlier, Reserve Bank of India’s deputy governor T Rabi Sankar had said that the basic objective of linking the credit cars to UPI is to provide a customer with wider choice of payments, PTI reported.

According to the circular, the UPI apps will ensure complete transparency on the transactions made by a customer using a credit card by means of easily accessible transaction history and clearly visible user interface.

The credit car issuers and apps have been asked to send appropriate notifications or communication to the customer during each event of the credit card life cycle for such transactions.

(With PTI inputs)


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