According to a recent NPCI circular, RuPay will not be charged for credit card use on Unified Payments Interface (UPI) for transactions up to Rs. 2,000.
The RuPay credit card has been established for the last four years, and all major banks have been authorized and are now selling additional cards for both commercial and retail applications.
"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 kinds of transactions," the circular said on October 4.
In a circular, the existing process from the app will apply to credit cards as well. The National Payments Corporation of India (NPCI) claims that the process from the app is appropriate for international transaction enablement.
According to the report, the Nil Merchant Discount Rate (MDR) would apply for this category up to the transaction amount less than and equal to Rs. 2,000.
MDR is the amount of money paid by a merchant to a bank for accepting credit or debit cards from their customers every time a card is used for payment in their stores.
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"This circular is applicable starting at the date of publication, and members are urged to take note and bring the contents of this circular to the public attention," it told reporters.
"Our primary goal of partnering credit cards with UPI is to provide a greater choice of payments," says Deputy Governor Rabi Sankar of the Reserve Bank.
UPI apps would provide complete transparency on transactions made by a customer using a credit card, as per the circular, through a straightforward transaction history and a clear user interface while making the payment.
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During each event of the credit card lifecycle, credit card issuers and apps will send appropriate notification or communications to the customer, as per the circular.
The move will increase the homegrown payment gateway and increase the acceptance of RuPay cards.
The report also stated that there is a need to keep a separate mobile number attached to an add-on card.