RuPay Credit Cards Offer Free UPI Payments Up to ₹2,000

According to the latest guidelines from the National Payments Corporation of India, as of November 2025, customers using RuPay credit cards can make UPI payments up to ₹2,000 without incurring any additional charges. This is a significant development, as many users were previously unsure whether using a credit card for UPI payments would result in extra fees.

However, for UPI payments exceeding the ₹2,000 threshold, the Merchant Discount Rate (MDR) may apply. This charge is typically levied on the merchant, but in many cases, the shopkeeper collects it from the customer. It is worth noting that the MDR charge currently applies only to large merchants and branded stores, while small shopkeepers, local vendors, and grocery stores are exempt from this requirement.

This means that for most everyday purchases, such as at local shops or grocery stores, customers with RuPay credit cards are unlikely to be affected by the MDR charge when making UPI payments. They can continue to enjoy the convenience of UPI payments without any additional costs, as long as the transaction amount remains below ₹2,000.