Yes, this is true and official. The RBI had announced a few years ago that the citizens of India will be able to make payments to any UPI or QR from their credit cards which will not require money in your bank account.
On 4th June 2023, the NPCI started pilot of Credit Card to UPI payment transfer with few banks - HDFC Bank, Punjab National Bank, Union Bank and Indian Bank. After few weeks, they added Kotak Mahindra Bank, Axis Bank and Canara Bank.
This facility to work on the specific RUPAY cards not on VISA and MasterCards.
How it works -
- The customers can link these cards to the UPI ID on BHIM app or any UPI app.
- Post linking the card, customer will be able to make payment to a merchant by scanning the UPI QR code. Payment authentication will be done using UPI PIN.
- Cash withdrawal at merchant, P2P, P2PM, card to card payments will not be permitted through this functionality.
- Transaction through this process will follow UPI standard transaction limits.
- Features like AutoPay and dispute resolution will be available for the customer via ODR (UPIHelp) through UPI Apps.
The users can link their Rupay card with UPI payment apps like - GPay, PayTM, PayZapp, PhonePe, Slice, MobiKwik and BHIM.
Charges-
As per NPCI, there are no special charges for transferring money from Credit Card to UPI or QR. However, the credit card issuer may charges on the use of that particular type of credit card. But, as the objective of government is to keep UPI free up till certain limits, there seems no charges to the payers.
How to avail these RUPAY Credit Cards?
Although the NPCI has announced the launch of this special service but on the ground, the banks are hesitating to issue Rupay Cards to the consumers. Our team did ground visits to the bank branches and here is how the banks are responding.
HDFC Bank -
This card is not for all the customers. As of now, this is open for people who hold an account with HDFC Bank. Not only this, the issuance of this special Rupay card is announced by their backend as "offers", which can be checked by the customers by logging into their account. You will not be entertained if there is no offer on your screen.
Punjab National Bank -
No information at the counter. You may check with the customer care and apply using your net banking.
Union Bank -
You need to open a bank account with a minimum balance of Rs. 20,000. Then book an FD of minimum Rs. 25,000. Basis on your FD, the bank will issue you the Rupay card with a limit of 80% of your FD value.
Indian Bank -
No information at branch. But when branch manager is enquired, the process is found same like Union Bank.
Kotak Mahindra Bank-
Is issuing the Rupay Cards to people having a Kotak Bank account and that to on the basis of Fixed Deposits.
Canara Bank -
Following the Union Bank process.
Axis Bank -
Initially they denied the issuance of card after doing video KYC but after a week, the bank arranged physical visit by an executive and got the formalities done. We are waiting to get this card
In the next blog, will share how it goes...
Disclaimer - The responses of banks are shared on the basis of factual visits to the branches of mentioned banks across Delhi NCR. The treatment to different type of consumers always differ as per the profile of individuals. We do not guarantee the internal processes and decisions of banks to provide this special cards. We do not intend to promote or demote any organisation in this post.
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