- There will be no charge for RuPay credit card use on Unified Payments Interface (UPI) for transactions up to ₹2,000 in line with the RBI direction, a recent NPCI circular said.
- “Acquirers shall categorize Small Offline Merchant as per the RBI circular dated December 6, 2017. 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,” a circular issued by NPCI, which operates UPI, said.
- The circular laid down guidelines to operationalise RuPay credit cards linked to UPI, further to which NPCI will use the learnings to scale up implementation and usage.
- MDR is the fee that merchants are charged while accepting payments. Credit cards attract the highest MDR ranging between 1-2 percent of the transaction amount.
- The RBI defines small merchants as having an annual turnover of up to INR 20 Lakh. Similarly, an acquirer refers to the authority that accepts payments on behalf of the merchant through the payment processor as well as the credit network and maintains the merchant’s account.
No charge for RuPay credit card use on UPI for transaction up to ₹2,000
