Free up to 2000 ‘UPI’ transactions through RuPay credit cards

New Delhi : The National Payments Corporation of India (NPCI) on Wednesday clarified through a circular that there will be no charges for transactions up to Rs 2,000 on RuPay credit cards through Unified Payments Interface (UPI). All major banks are offering RuPay credit cards to commercial and retail customers, and the role of the government is to encourage transactions through RuPay cards to promote cashless transactions.

As per RBI instructions, no charges will be levied on limited transactions through UPI using RuPay credit cards. NPCI said in the circular that transactions are possible through UPI or other apps using credit cards to complete transactions internationally. This rule will be applicable for transactions up to Rs 2,000 or less under the Merchant Discount Rate (MDR) zero category. MDR is a fee paid by a merchant to a bank for accepting money from its customers through credit or debit cards. This new rule has come into force after the announcement of the circular i.e. from Wednesday itself.

The option of transacting through UPI using credit cards was made available only to provide customers with various options to transact online. Currently, UPI is linked to savings accounts or current accounts through debit cards. This move of RBI will give a boost to indigenous payment system (payment gateway) and encourage wider acceptance of RuPay cards.

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