The National Payments Corporation of India (NPCI) has directed all banks issuing RuPay credit cards to ensure that reward points and other offers on RuPay credit cards for Unified Payments Interface (UPI) transactions do not fall below those available for RuPay credit cards, unless the issuer does not receive an interchange fee. The NPCI issued this direction after observing that the reward points, advantages, and features for RuPay credit cards on UPI transactions do not match the benefits offered on RuPay credit card transactions.
"Issuers shall ensure that reward points, benefits, features, and other ancillary offers should not be lower (directly or indirectly) for RuPay credit cards on UPI transactions compared to RuPay credit cards, except for transactions where the issuer does not earn any interchange fee," according to a circular from the NPCI. According to the NPCI, RuPay credit card producing banks must comply with the circular's provisions by September 1, 2024.
RuPay credit cards on UPI, which were launched in 2022, provide users with a smooth, digitally connected credit card lifecycle experience, allowing them to use their credit cards more frequently. Merchants profit from increased consumption by being part of the credit ecosystem, which accepts credit cards via asset-lite QR codes.
Currently, 16 banks provide this product, including Punjab National Bank, Union Bank, Indian Bank, HDFC Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank, and others. Customers can take advantage of this feature through apps like BHIM, PhonePe, Google Pay, PayZapp, Slice, Paytm, MobiKwik, Groww, Cred, ICICI iMobile, Amazon Pay, and Jio Finance.
Experts feel that credit on UPI is a game changer because it has the ability to provide millions of people with seamless access to credit, making it more accessible and affordable. Credit on UPI is currently available through two offerings: 'RuPay credit card on UPI' and 'Credit Line on UPI'.
Earlier this week, Dilip Asbe, managing director and chief executive officer of NPCI, stated that credit transactions on UPI total Rs 10,000 crore per month, with approximately Rs 100-200 crore coming from the "credit line on UPI" facility and the remainder from the RuPay credit card on UPI facility.
