The National Payments Corporation of India (NPCI) has said that the users of the RuPay credit card won’t be charged on Unified Payments Interface (UPI) for transactions up to Rs 2,000 in line with the RBI direction. The RuPay credit cards were launched four years ago, and all major banks are enabled and are issuing incremental cards for both commercial and retail segments.
“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,” the NPCI notification stated.
The NPCI has said that for international transaction enablement, the existing process from the app will apply to credit cards too. It is to be noted that the Reserve Bank of India has approved the linking of RuPay Credit Cards to UPI, which can help them in swift payments. Credit cards can be linked to a Virtual Payment Address (VPA), i.e., UPI ID, which will ensure a safe and secured payment platform.
Customers can now enjoy the ease and the increased opportunity to use their credit cards, whereas shopkeepers and merchants can benefit from the increase in consumption by being part of the ecosystem.
Besides this, nil Merchant Discount Rate (MDR) would apply for this category up to the transaction amount less than and equal to Rs 2,000, it noted. Nil MDR, which is no interchange, PSP & app provider charges, shall apply for this category up to the transaction amount less than and equal to Rs 2,000, said the circular.
The 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.
RBI Governor Shaktikanta Das on 21 September launched the RuPay credit card on Unified Payments Interface (UPI) network, this could be the next big step in the fintech sector. Experts said that the RuPay cards have the potential to expand the market for credit by almost five times.