Paisabazaar CEO Ram Kumar Singh told a press conference on May 10, 2026 that credit cards deliver greater value than UPI for most purchases, citing the RBI‑approved 0.4% merchant discount rate that now applies to UPI payments over ₹50,000.
Singh highlighted that UPI’s simplicity is offset by the absence of cashback or reward points, whereas a RuPay credit card can return 5% in cash back on a ₹50,000 spend, totalling ₹2,500.
The chief added that credit cards also grant a 40‑50 day interest‑free window, enabling consumers to spread payments without incurring finance charges—an advantage not mirrored by UPI.
Yet, Singh warned that the benefit evaporates if balances linger past the due date, turning rewards into debt. He urged users to pay full balances to avoid interest that can exceed earned cash back.
In a separate interview, a Mumbai shopkeeper named Nisha Patel said she switched to using her credit card for bulk purchases to capture 3% cashback, saving her ₹1,200 on a monthly ₹40,000 order.
Banks are already consulting the RBI on fee adjustments, and the next regulatory briefing is scheduled for June 5. The industry expects new guidelines to balance merchant discounts with cardholder rewards.