National Payments Corporation of India said that the existing process from the app will be applicable on credit cards as well.
National Payments Corporation of India said that the existing process from the app will be applicable on credit cards as well.
In a recent NPCI circular, it has been said that as per RBI’s directive for use of RuPay credit card on Unified Payments Interface (UPI), no charges will be levied for transactions up to Rs 2,000.
The RuPay credit card is operational for the last four years, and all major banks are enabled and are issuing incremental cards for both commercial and retail sectors.
“During credit card on-boarding on the Apps, device binding and UPI PIN setting process shall be included and considered as customer consent to enable credit card for all types of transactions,” the circular issued on October 4 said. “
The National Payments Corporation of India (NPCI) said in the circular that the existing process of the app to enable international transactions will be applicable to credit cards as well.
It is noted that Nil Merchant Discount Rate (MDR) for this category will be applicable up to transaction amount less than and equal to Rs.2,000.
MDR is the cost paid by a merchant to a bank for accepting payments from its customers via credit or debit cards whenever the card is used for payment in their stores. The merchant discount rate is expressed as a percentage of the transaction amount.
“This circular is effective from the date of issue and members are requested to take note of the same and bring the contents of this circular to the notice of the concerned stakeholders,” it said.
RBI Deputy Governor T. Rabi Shankar had earlier said, “The basic objective of linking credit cards with UPI is to provide the customer with a wider choice of payment options. Currently, UPI is linked to savings accounts or current accounts through debit cards.” Has happened.”
As per the circular, the UPI app will ensure complete transparency on the transactions made by the customer using the credit card through easily accessible transaction history and clearly visible user interface while making the payment.
In accordance with the circular, the credit card issuer and the App shall send appropriate notifications or communications to the customer during each event of the credit card lifecycle for such transactions.
The move will give a boost to domestic payment gateways and encourage wider acceptance of RuPay cards.
It further said that there is a need to maintain a separate mobile number linked to the add-on card.