All You Need to Know About Rupay Credit Card UPI Payment

Friends, Rupay Credit Card is very much discussed at the present time and many people are using it as well. It is being told that from now on you can do UPI transactions with your credit card as well, but that credit card should be your Rupay Credit Card. Now the question arises that why we can do UPI transactions only with Rupay credit card, while most credit cards are issued by VISA and Master Card. In this article, we will know whether you can really do UPI Transactions with your Rupay Credit Card and if yes, then how will you setup it, we will also know in this article.

What is Rupay Credit Card How it works?

Rupay Credit Card is a type of credit card issued by the National Payments Corporation of India (NPCI). Rupay Credit Card is an Indian payment card that operates on the domestic Rupay network and provides a cost-effective alternative for making digital payments in India. It is an indigenous payment system established in India, aimed at promoting digital payments and reducing reliance on international payment networks like Visa and Mastercard.

Rupay Credit Card

The Rupay Credit Card operates on the domestic card network called Rupay, which was launched by NPCI in 2012. It was developed to provide a cost-effective alternative to the globally dominant card networks. Rupay Credit Cards are accepted at most merchant establishments in India, including online and offline retail stores, e-commerce websites, and ATMs.

Rupay Credit Cards offer functionalities similar to other credit cards, allowing cardholders to make purchases and payments on credit. They come with a predefined credit limit, and users can make purchases within that limit. Cardholders will have the flexibility to repay the outstanding amount either in full or in monthly instalments, subject to the terms and conditions set by the issuing bank. Rupay Credit Cards work in a similar way to other credit cards, allowing users to make purchases on credit.

One of the key benefits of Rupay Credit Cards is their affordability. They often have lower transaction costs compared to international card networks, making them more accessible to a greater population in India. Rupay also offers various card variants, including Platinum, Classic, and Contactless, with different features and benefits tailored to the needs of different customers.

UPI (Unified Payments System) was started in India on April 11, 2016. After the launch of the UPI system in April 2016, the total number of UPI transactions was 45 Crore in January 2017 and this figure has increased to 870 Crore in April 2023. And if we talk about the Total UPI Transaction Amount with this, then it was Rs 1700 Crore in January 2017 and in April 2023 this amount has increased to Rs 14 Lakh Crore. Now you can get an idea from this how UPI is transforming India’s digital payments.

You must be able to understand that how dependable every Indian has become on UPI. Nowadays people use UPI even for every small transaction and we all have a UPI App and in these UPI Apps, we do payments through our UPI ID.

Seeing the increasing demand for UPI, the Government of India has decided that now you can add Rupay Credit Card to your UPI apps and do transactions through UPI. Now if you are a credit card user then you must know about the benefits of credit card. On paying with a credit card, you get lots of cashback offers and also you get 50 days interest free loan.

Till now you could make payment through UPI only when there was balance in your savings or current account but now if you do not have money in your bank account but you have a Rupay credit card, then you can easily do UPI transactions through that too.

Big Announcement By RBI: Now you can choose the network of your credit card by yourself:

Massive changes are happening in credit cards in India. RBI is coming out with such notifications one after the other that Banks, Payment companies and Fintech companies in India have lost sleep. As per RBI’s latest announcement, credit card users will now be given the flexibility to choose their credit card networks. This means that now you will have the option to choose your network of credit from Visa mastercard and Rupay credit card network.

Now if you are thinking that what will be the difference with this single announcement, then I want to tell you that this single announcement has changed the whole industry of credit cards. Next, we will tell you what will be the impact of this announcement and also we will talk about how you can take advantage of this whole situation.

Before understanding this announcement of RBI, we have to understand the announcement made by RBI 5 months back, in which it said that you can link your Rupay Credit Card to UPI and do transactions with it. Now with these two announcements of RBI, the whole game is going to change.

First of all we talk about Rupay Credit Card on UPI. First of all, we have to understand that why linking credit card with UPI is a big deal?

Why is linking credit cards with UPI a big deal?

Now you pay through UPI and when a transaction takes place in your UPI, that money is deducted directly from your savings account. Now see, there is convenience in paying with UPI, there is no doubt about it, but we are not getting any benefit from it, but if you do UPI transaction from your Savings account, then there are many cons, such as –

  • When you do transactions in small amounts, your bank statement becomes very messy.
  • You don’t get any cashback in these payments.
  • This amount immediately gets deducted from your account and
  • If there is a fraud in your payment then it becomes very difficult to recover them.

Linking credit card with UPI also has many massive benefits –

  • By linking the credit card with UPI, the transactions will not be done from your account, but this money will be deducted from your credit card and you get an interest free time of at least 40 days to pay.
  • You will also start getting rewards on transactions after paying with a credit card.
  • Your bank account statements will be very clean if you make payments through credit cards. Instead of your small UPI transactions, your credit card payment will appear.
Advantages of linking credit card with UPI

Another advantage of this will be that you can start building your credit score while sitting, without any expense. But here it must be kept in mind that for this you have to pay your credit card bill on time, otherwise your credit score will deteriorate instead of being made.

Variants of Rupay Credit Card:

RuPay Debit or Credit Card comes in three variants in which different features are provided to you. Let us understand these three variants –

Classic (Basic): Classic Rupay Credit Card is a very basic category credit card and in this you are provided with very limited features. And such credit cards are mostly given to you free for life time because these credit cards are specially designed for beginners.

Platinum (Average): Platinum Rupay credit or debit card is for average category people. For this type of card, the bank may charge you an annual fee of around ₹ 400 – ₹ 500, but you are also given some great features in it.

Select (Premium): Select Rupay credit cards are designed for premium type of people and their fees are charged more than the other two cards. But in these, you are provided with more features and benefits than those two types of cards.

RBI is Planning for Direct Credit Lines:

RBI is making continuous efforts to make payments more convenient for its customers. The long term vision of RBI is to eliminate the entire system of linking credit cards for customers. And online payments should be made so smooth that people spend more and more so that our GDP (Gross domestic product) gets a boost. RBI wants to bring a credit line issue system for its customers so that people do not need to take any physical card of any kind.

Credit Line: Credit line people will have an account like their savings account in which they will be provided some limit by the bank and you can spend that amount whenever you want through UPI from this Credit Line account. And then later you can pay it the way you pay your credit cards. That is, credit line is the same concept as a credit card, but in this we will be free from the hassles like getting a physical card issued and then activating its PIN.

Which banks’ Rupay Credit Card is available?

The demand for Rupay credit card is continuously increasing, hence when Rupay payment network provided its customers the facility to link their credit cards with UPI, the number of banks issuing Rupay credit cards is also continuously increasing. At present, the names of the banks which have the authority to issue Rupay Credit Card are given below –

  • Axis Bank
  • Bank Of Baroda
  • HDFC Bank
  • Indian Bank
  • Kotak Mahindra Bank
  • Punjab National Bank
  • Union Bank
  • AU Small Finance Bank
  • SBM Bank
  • IDBI Bank
  • Federal Bank
  • Yes Bank
  • Bank of Maharashtra
  • ICICI Bank
  • City Union Bank
  • SBI Bank

Rupay Credit Card will now capture the market. RBI has made this announcement at a perfect time that now you will be able to choose your own credit card networks. Due to which now all the credit cards will be available in all the three card networks VISA, Mastercard and Rupay.
Along with this, if you have a VISA or Master Card, then you can easily get it converted into Rupay Credit Card and you can easily link that Rupay Credit Card to UPI.

What are the benefits of Rupay Credit Card to the Merchants?

By linking Rupay Credit Card with UPI, Credit Card users will get a lot of convenience, along with this, the life of merchants will also become easier with Rupay Credit Card. For merchants, the setup of VISA and Mastercard used to cost a lot. in which

  • Firstly, their initial setup used to be costly.
  • Along with this, they also had to pay 2%-3% transaction charges. Therefore, many merchants did not accept credit cards.

But with Rupay Credit Card both these costs will be reduced significantly. Initial setup fee will be absolutely zero because it will be scanned from QR code. Therefore, in the next 5 years, Rupay Credit Cards will be on a very dominant position in the India market. Now as we all know that Rupay has a Government card network, so we can get to see very good offers in it.

Now how can you take advantage in this situation, let us also know this –

If you do not have Rupay Credit Card, then there are two cases, the first of which is – If you have many credit cards, then we would suggest you to convert one of those credit cards into Rupay Credit card.

But if you have only one credit card, then our suggestion is that you should not be in a hurry and wait for the next four to five months i.e. wait till the beginning of 2024 because VISA and Mastercard must also be fighting a battle to provide this facility to their customers. But if this does not happen, then you can get a Rupay Credit Card issue done for you.

Why does NPCI support only Rupay Credit Card?

The National Payments Corporation of India (NPCI) developed and supports Rupay Credit Card as part of its efforts to promote domestic payment systems and reduce dependence on international card networks like Visa and Mastercard. Here are some key reasons why NPCI support only Rupay Credit Card –

  • One of the primary motivations behind the development of Rupay Credit Card was to provide an affordable alternative to international card networks.
  • NPCI aimed to offer a payment solution that would be more cost-effective for banks, merchants, and customers in India. By supporting Rupay Credit Card, NPCI aims to minimize transaction costs associated with international networks, thus making digital payments more accessible and affordable.
  • NPCI aims to maintain control over the payment infrastructure within the country. It enhances the sovereignty and security of India’s payments ecosystem, reduces dependence on external networks and ensures that sensitive payment data remains within the country.
  • NPCI along with the participating banks have the flexibility to design and customize features and benefits through the Rupay Credit Card specifically for the Indian market.
  • By introducing Rupay Credit Card as an alternative to established international networks, NPCI aims to promote competition in the payments industry.

Please note that NPCI is focussing only on Rupay Credit Card but it does not mean that it is disallowing customers and banks from using other payment networks. NPCI’s only objective behind this is that Indian customers should use their Indian technology only so that their sensitive data remains safe in their own country.

How to link Rupay Credit Card with PhonePe?

Now I will show you how you can link your Rupay Credit Card with PhonePe Application. The process of adding this credit card is almost the same in all UPI apps. In all UPI apps, you will get the option to add this credit card by clicking on your profile. Now let us see how to link Rupay Credit Card with PhonePe Application –

  1. First of all you have to open the application on your phone and click on your profile in the top left side.
  2. Now you will get a new option named Link Rupay Credit Card On UPI here, you have to click on it.
How to link Rupay Credit Card With PhonePe?

  1. Now the list of all the banks will appear in front of you, you will select the bank of which bank you have a credit card.
  2. Now all the credit cards of that bank linked to your mobile number will be automatically fetched by it. After fetching, it will show your credit card in front of you on the screen.
  3. Now you have to click on your credit card and set a UPI PIN for it.
  4. Now you will enter the last six digits of your credit card and also enter its expiry month and year.
How to link Rupay Credit Card With PhonePe?

  1. After this an app OTP will be sent to your mobile number which will be automatically detected by it.
  2. Now you will enter your credit card PIN and click OK.
  3. After this, whatever UPI Pin you want to keep on your credit card, you will enter it and OK it.

In this way you can link your Rupay credit card with PhonePe. The process to add this credit card is almost the same in all third party UPI apps, which you can easily add.

Now after linking this credit card, whenever you make a payment anywhere, you will also see the option of this credit card, on which you can make your payment by clicking on it and entering your UPI PIN.

In the same way, the way you check the balance of your bank account, you can also check the balance of your credit card.

  • After clicking on Check Balance, you have to select your credit card
  • After entering your UPI PIN, it has to be OK.
  • After this, the available balance of your credit card will come in front of you. Along with this, you can also see your credit card dues here i.e. how much you have spent with your credit card.
How to link Rupay Credit Card With PhonePe?

It’s important to note that Rupay Credit Cards are issued by various banks and financial institutions in collaboration with NPCI. Therefore, the specific terms, conditions, and features of Rupay Credit Cards may vary depending on the issuing bank.


ALL articles on this website are written for informational purposes only, it does not have the intention of defaming any company or service. The information presented has been shared on the basis of its knowledge and experience. That's why before having full faith in the information, do research at your level.

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