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 are not lower than those available for RuPay credit cards, except in cases where the issuer does not receive an interchange fee.
This directive from the NPCI comes after it observed that the reward points, benefits, and features for RuPay credit cards on UPI transactions are not equivalent to 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,” the NPCI stated in a circular.
The RuPay credit card issuing banks must abide by the contents of the circular by September 1, 2024, according to the NPCI.
Launched in 2022, RuPay credit cards on UPI provide a seamless, digitally enabled credit card lifecycle experience for customers, who benefit from the increased opportunity to use their credit cards. Merchants also benefit from the increase in consumption by being part of the credit ecosystem with the acceptance of credit cards using asset-lite QR codes.
Currently, as many as 16 banks are facilitating this product, including Punjab National Bank, Union Bank, Indian Bank, HDFC Bank, Canara Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank, and others. Apps such as BHIM, PhonePe, Google Pay, PayZapp, Slice, Paytm, MobiKwik, Groww, Cred, ICICI iMobile, Amazon Pay, and Jio Finance are among those providing this facility to customers.
Experts believe that credit on UPI is a game-changer because it has the potential to provide seamless access to credit to millions, making credit more convenient and affordable. Currently, credit on UPI is 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 are touching Rs 10,000 crore each month, of which approximately Rs 100-200 crore is from the “credit line on UPI” facility, while the remainder comes from the RuPay credit card on UPI facility.
First Published: Aug 07 2024 | 3:06 PM IST
