There will be no fees for using RuPay credit cards on Unified Payments Interface (UPI) for transactions up to Rs. 2,000 is in line with the RBI direction, a recent NPCI circular said.
RuPay credit cards have been in operation for the past four years and all major banks are activated and are issuing incremental cards for both the commercial and retail segments.
“While credit card boarding on apps, bound devices and UPI The PIN setting process will include and be construed as the customer’s consent to the activation of the credit card for all types of transactions,” the October 4 circular said.
To support international transactions, the existing process from the app will also apply to credit cards, the National Payments Corporation of India (NPCI) said in the circular.
Nil Merchant Discount Rate (MDR) will apply to this category for transaction amount less than and equal to Rs. 2,000, it noted.
MDR is the cost a merchant pays a bank to accept a payment from their customer via a credit or debit card each time the card is used to make a payment at their store. The merchant discount rate is expressed as a percentage of the transaction amount.
This Circular says: “This Circular is applied from the date of issuance and requires members to note and notify the contents of this circular to relevant parties”.
“The fundamental goal of linking a credit card with UPI is to provide customers with more diverse payment options. Currently, UPI is linked via debit card to a savings or checking account. future,” Reserve Bank Deputy Governor Rabi Sankar said earlier.
According to the circular, UPI applications will ensure complete transparency for transactions made by customers with credit cards, by easily accessing transaction history and clearly visible user interface. during payment.
Credit card issuers and applications will send appropriate notifications or communications to customers during each credit card lifecycle event for such transactions, according to the circular.
This step will promote homegrown payment gateways and encourage wider acceptance of RuPay cards.
It also indicates the need to maintain a separate cell phone number attached to the plug-in card.