New Delhi: In accordance with the RBI’s directive, a recent NPCI circular stated that using a RuPay credit card on the Unified Payments Interface (UPI) will be free for transactions up to Rs 2,000 direction, according to a recent NPCI circular.

Since RuPay’s credit card has been in use for four years, all major banks have enabled it and are releasing new cards for both the business and retail markets.

“During credit card on-boarding on the apps, the device binding and UPI PIN setting process shall include and be construed as customer consent for credit card enablement for all types of transactions,” the circular dated October 4 said.

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The National Payments Corporation of India (NPCI) stated in the circular.circular that the current procedure from the app will apply to credit cards as well for the purpose of enabling overseas transactions.

It stated that there would be no Merchant Discount Rate (MDR) for this category up to a transaction amount of Rs 2,000 or less. MDR is the fee that a business pays to a bank each time a customer uses a credit or debit card to make a purchase at one of their establishments. The percentage of the transaction value is used to express the merchant discount rate.

“This circular is applicable from the issuance date and members are requested to take note and bring the contents of this circular to the notice of the relevant stakeholders,” it said.stakeholders,” it said.

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“The basic objective of linking credit cards to UPI is to provide a customer with a wider choice of payments. Currently, UPI is linked through debit cards to savings accounts or current accounts,” Reserve Bank Deputy Governor T Rabi Sankar had earlier said.

According to the circular, UPI apps would guarantee total transparency on purchases made by a consumer using a credit card, including conveniently available transaction histories and a clearly visible user interface while making the payment.

Credit card issuers and apps will send appropriate notifications or communications to the customer during each event of the credit card lifecycle for such transactions. The action will encourage wider acceptance of RuPay cards and promote the in-house payment system.

It went on to say that an add-on card requires the maintenance of a different mobile number.

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