Good News for Rupay Credit Cards | NPCI Says: Give More Rewards and Cashback on UPI

Summary

Vikrant Sharma announces a major update for RuPay credit card users in his latest video. The National Payments Corporation of India (NPCI) has issued a circular mandating changes to the reward structures of RuPay credit cards by September 1, 2024. This update ensures that users will receive the same rewards for payments made via UPI as for other types of transactions, addressing disparities in reward points and cashback. This change aims to enhance user experience and ensure fair rewards for all RuPay credit card transactions. Stay tuned for more updates and insights.

Takeaways

• 📅 The Reserve Bank of India (RBI) has issued a new circular effective from September 1, 2024, addressing the reward structure benefits related to credit cards.
• 💳 Banks issuing credit cards in India are required to make changes to their reward structures to ensure customers receive benefits for both normal and UPI-related spends.
• 🔄 The circular aims to counter the disparity where customers received fewer rewards for payments made through UPI compared to direct spends.
• 🎁 Customers can expect to receive unlimited cashback and rewards for transactions made using credit cards linked to UPI, similar to the benefits they get for direct payments.
• 🚫 An exception to the new rules states that transactions that previously incurred no interchange fee, such as payments exceeding ₹2,00,000, will not be included in the new reward structure.
• 🛒 Merchants are expected to benefit from the increase in digital payment processing, as they will only have to pay interchange fees for transactions that involve fees.
• 💡 The circular is intended to encourage more customers to use credit cards for UPI payments, potentially increasing the demand for digital payment processing services.
• 📈 The move could lead to a rise in supply as the demand for digital payment processing increases, benefiting businesses involved in this sector.
• 🛑 The new rules may require merchants to adjust their practices, as they can only turn off payments for transactions that involve interchange fees.
• 🤔 The circular raises questions about the future of credit card rewards and whether further adjustments may be needed to ensure customer satisfaction and fair merchant practices.
• 🔗 The video transcript suggests that linking credit cards to UPI for payments could become more attractive to customers due to the potential for increased rewards and cashback.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the new circular issued by the National Payments Corporation of India (NPCI) regarding the rewards structure and benefits related to Rupee Credit Cards.

What is the expected change due to the new circular by NPCI?

The expected change is that by September 1, 2024, all banks issuing Rupee Credit Cards will have to align their reward structures to offer benefits for both normal spends and UPI spends.

Why was the circular issued by NPCI?

The circular was issued to address the disparity in rewards that customers receive for payments made through their Rupee Credit Cards, especially when compared to rewards received for UPI payments.

What is the current issue with the rewards structure for Rupee Credit Cards?

The current issue is that customers receive fewer rewards or benefits for payments made through their Rupee Credit Cards compared to the rewards they receive for UPI payments.

How does the new circular benefit customers who use UPI payments through their Rupee Credit Cards?

The new circular ensures that customers will receive the same rewards for both normal spends and UPI spends, eliminating the disparity and offering unlimited cashback for certain transactions.

What is the exception mentioned in the circular regarding transactions over a certain amount?

The exception states that transactions over ₹2,50,000 will not be included in the new rewards structure, as they are not subject to interchange fees, which are currently not charged for transactions up to ₹2,00,000.

What is the impact of the new circular on customers who make large transactions?

For customers making transactions above ₹2,50,000, they will continue to receive normal rewards as the new circular does not apply to such high-value transactions.

How does the new circular affect the interchange fee structure?

The new circular does not directly affect the interchange fee structure but aims to standardize the rewards for customers, regardless of the payment method used.

What is the expected outcome of the new circular on the digital payment ecosystem?

The expected outcome is an increase in demand for digital payments as customers are incentivized to use their Rupee Credit Cards for both small and large transactions, benefiting the ecosystem as a whole.

What is the suggestion made in the script for businesses to improve customer experience with digital payments?

The suggestion is to reduce the interchange fee for transactions above ₹2,00,000 or issue more such circulars to ensure that customers do not face any issues or disappointments when making payments.

How can customers benefit from linking their Rupee Credit Cards to the UPI app according to the new circular?

By linking their Rupee Credit Cards to the UPI app, customers can expect to receive rewards for UPI payments that are on par with the rewards they receive for normal card spends, including unlimited cashback for certain transactions.