No Charges on RuPay Credit Card UPI Payments Up to ₹2,000, Confirms NPCI

The National Payments Corporation of India (NPCI) has officially clarified that no charges apply on UPI payments up to ₹2,000 made using RuPay credit cards. This rule ensures small, everyday transactions remain free and accessible, strengthening India’s digital payments ecosystem.

NPCI confirmed that if a user makes a UPI payment under ₹2,000 — whether for groceries, cabs, or food — no fee is charged. These transactions remain completely free for consumers and small merchants.

However, when a transaction exceeds ₹2,000, a Merchant Discount Rate (MDR) may apply. Importantly, this fee is charged to the merchant, not to the customer. In most cases, small vendors and local shops remain exempt, as MDR typically applies only to large merchants, retail chains, and e-commerce platforms.

NPCI’s clarification aims to remove confusion around recent credit card–UPI integrations, especially after RuPay credit cards became compatible with UPI apps like Google Pay, PhonePe, Paytm, and BHIM.

💳 How It Works

• You can link your RuPay credit card directly to your UPI app.
• Payments up to ₹2,000 are free of charge.
• For payments beyond ₹2,000, MDR applies only to merchants, not customers.
• Local vendors and small stores are exempt from MDR.

💡 Why It Matters

This move expands UPI’s reach by merging the convenience of credit cards with UPI’s simplicity and zero-cost model. It encourages wider adoption of digital payments while ensuring affordability for small businesses and everyday users.

NPCI also emphasized that users should make timely credit card bill payments, use credit responsibly, and track utilization to maintain good credit health.