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Banks Simplify UPI Integration with Virtual RuPay Credit Cards
November 29, 2023
Banks are actively working towards enhancing user convenience by promoting the integration of the Unified Payments Interface (UPI) with credit card transactions. This strategic move aims to provide users with a more versatile and seamless payment experience across various transaction types.
Addressing concerns about the need for a separate Rupay card for UPI payments, banks have introduced a streamlined solution. Users can now easily obtain a virtual Rupay credit card within a few hours, eliminating the requirement for an additional physical card. This innovative approach allows credit card users to enjoy the convenience of UPI transactions without the hassle of carrying multiple cards.
The virtual Rupay credit card operates independently, with its credit limit falling within the overall limit assigned to the primary credit card. This not only simplifies the user experience but also caters to customers who prefer the ease of UPI transactions without the need for physical cards. This is particularly significant in tier II and below cities where small merchants may lack point-of-sale (POS) machines.
Furthermore, small merchants will not incur Merchant Discount Rate (MDR), interchange, or other fees for transactions worth Rs.2,000 or lower when using RuPay credit cards through the Unified Payments Interface (UPI), as per the National Payments Corporation of India (NPCI). According to NPCI, “Nil MDR (no interchange, PSP & app provider charges) shall apply for this category up to the transaction amount less than and equal to Rs. 2,000,” in accordance with the RBI circular dated December 6, 2017. This move aims to boost digital transactions, especially in smaller cities and towns.
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