The National Payments Corporation of India (NPCI) in a circular has said unified payments interface (UPI) transactions up to 2,000 for RuPay credit card users won't be charged.

According to the NPCI's circular dated October 4, during credit card onboarding on the apps, the device and the UPI PIN setting process shall include and be construed as customer consent for card enablement for all kinds of transactions.

According to the NPCI, the existing app process for international transaction enablement will apply to credit cards as well. The organisation in charge of retail payments and settlements stated that no merchant discount rate will be applied for the category up to a transaction amount of 2,000 or less.

In layman's terms, the merchant discount rate is the cost paid by a merchant to the bank for accepting credit or debit card payments from their customers every time it is used in their stores. This rate is given as a percentage of the entire transaction amount.

The NPCI notification stated that the circular is applicable as of the issuance date, October 4, and urged members to bring it to the notice of the relevant stakeholders.

Earlier, Reserve Bank of India's deputy governor T Rabi Sankar had said that the basic objective of linking the credit cars to UPI is to provide a customer with a wider choice of payments, PTI reported.

According to the circular, the UPI apps will provide complete transparency on credit card transactions by offering easily accessible transaction history and a clearly visible user interface.

Credit car issuers and apps have been asked to send appropriate notifications or communication to the customer during each event of the credit card life cycle for such transactions.