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The National Payments Corporation of India (NPCI) has announced a significant update for RuPay credit card users, standardizing the rewards system for UPI transactions. Effective from September 1, 2023, RuPay credit cardholders will now enjoy the same benefits and reward points for UPI transactions as they do for other types of credit card transactions, eliminating the previous disparity. This move aims to make RuPay credit cards more competitive and appealing in the evolving landscape of digital payments.
The standardization of rewards on UPI transactions signifies a crucial step in enhancing the user experience for RuPay credit cardholders. By aligning rewards across different payment methods, the NPCI aims to foster greater adoption and usage of RuPay credit cards for everyday transactions. This move is particularly relevant given the increasing popularity of UPI payments in India, which has become a dominant force in the digital payments ecosystem.
The introduction of interchange fees for RuPay-UPI transactions in October 2023, levied on purchases exceeding Rs 2,000 at a rate of approximately 2%, has also been a factor in driving this standardization effort. However, it's important to note that these fees do not impact consumers directly; the costs are absorbed by the merchants. Ultimately, this standardization ensures that RuPay credit cardholders are not penalized for choosing UPI payments, fostering a more inclusive and equitable environment for all users.
Source: New Credit Card Rules On UPI For RuPay Users, Effective From September 1; Check Benefits