December 4, 2022
No Charge On UPI Payments Via RuPay Credit Card For Up To Rs 2,000: NPCI

No Charge On UPI Payments Via RuPay Credit Card For Up To Rs 2,000: NPCI

As per a recent NPCI circular, RuPay credit card usage via the Unified Payments Interface (UPI) will be free for transactions up to Rs 2,000 following the RBI direction.

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

The National Payments Corporation of India (NPCI) stated in the circular that the current procedure from the app would apply to credit cards to enable overseas transactions.

It stated that there would be no Merchant Discount Rate (MDR) for this category up to a transaction amount of Rs 2,000 or less.

Also Read,

NARCL Offers To Purchase Debt Owed By Jaypee Infratech Ltd

MDR is the fee a business pays to a bank each time a customer uses a credit or debit card to purchase at one of their establishments. The percentage of the transaction value is used to express the merchant discount rate.

“Members are asked to take note of this circular’s contents and inform the relevant parties of its application as soon as it is issued.

“The main goal of integrating credit cards with UPI is to provide customers with more payment options. Debit cards are currently used to connect UPI to savings or current accounts, “T Rabi Sankar, the deputy governor of the Reserve Bank, said.

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

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

It went on to say that an add-on card requires the maintenance of a different mobile number.

Also Read,

Yubi, An Indian Fintech Unicorn, Makes Its UAE Debut With Spocto

 

Leave a Reply

Your email address will not be published.

It's always the best to move ahead of time.

Keep yourself updated with the knowledge of Fintech, Web 3, or the metaverse world,  join our community here