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RuPay credit cardholders will experience an upgrade in the rewards and benefits they receive for UPI (Unified Payments Interface) transactions from Sunday (September 1). This change follows new instructions from the National Payments Corporation of India (NPCI), which aims to standardise the rewards system across different payment methods.

What’s changing?

From September 1, RuPay credit cards will offer the same reward points and benefits for UPI transactions as they do for other types of credit card transactions.

This means that cardholders will no longer face a disparity in rewards when using their RuPay credit cards for UPI payments compared to regular card transactions.

Why the change?

The NPCI's recent circular underlined the critical role of reward points in encouraging credit card usage.

It observed that RuPay credit cards were receiving different rewards and benefits for UPI transactions compared to traditional credit card transactions.

To rectify this, NPCI mandated that all banks ensure RuPay credit cards offer equivalent rewards, benefits, and features for UPI transactions, except in cases where the issuer does not receive an interchange fee.

NPCI’s directive

NPCI's directive aims to promote fairness and competition among credit card providers. By aligning the rewards for UPI transactions with those for other transactions, NPCI intends to make RuPay credit cards more attractive and encourage their use in digital payments.

The change is expected to enhance the appeal of RuPay cards and drive higher adoption of digital payment methods.

Impact on consumers

For consumers, this means that using a RuPay credit card for UPI transactions will now provide the same advantages as using the card for other transactions.

This move is designed to make RuPay credit cards more competitive and appealing in the evolving digital payments landscape.