The RuPay on UPI Revolution
For years, UPI payments were directly linked to bank accounts, offering convenience but no rewards. The game changed when the National Payments Corporation of India (NPCI) enabled RuPay credit cards to be linked with major UPI apps like Google Pay, PhonePe,
and Paytm. This allows you to scan any merchant QR code and pay using your credit line instead of your savings account. The primary advantage is that these transactions now become eligible for the reward points offered by your credit card, just like a regular card swipe. Suddenly, every small vendor payment is an opportunity to accumulate points, transforming your spending habits without any extra effort. It’s important to note that currently, only RuPay credit cards are eligible for this feature, not Visa or Mastercard.
Choosing Your Weapon: The Right Credit Card
Not all RuPay credit cards are created equal. To maximise your flight-earning potential, you need a card that either offers a high reward rate or has favourable airline transfer partners. Some cards are designed specifically for UPI rewards, offering direct cashback, while others are part of a larger travel ecosystem. For straightforward rewards, cards like the Kiwi RuPay Credit Card and Axis Bank SuperMoney RuPay Credit Card offer direct cashback on UPI spends. For travel enthusiasts, a co-branded card like the Tata Neu Infinity HDFC Bank Credit Card is a strong contender. It earns NeuCoins on UPI spends, which can be used for flights on Air India Express. For those aiming for premium travel, a card like the HDFC Infinia, if available as a RuPay variant, can be powerful due to its excellent points transfer program to partners like Singapore Airlines and British Airways. The key is to pick a card that aligns with your spending habits and travel goals.
The Art of Earning: Maximising Points on Daily Spends
Once you have the right card linked to your UPI app, the strategy is simple: use it for as many eligible merchant payments as possible. From your morning coffee to your monthly utility bills and online shopping, every transaction adds to your points tally. However, be mindful of the rules. Most banks exclude certain categories like rent payments, wallet loads, and fuel from their rewards programs. Additionally, there are often monthly caps on the number of points you can earn from UPI transactions. For example, the Tata Neu card has a monthly cap of 500 NeuCoins on most UPI rewards. Also, be aware of transaction limits; while the standard daily UPI limit is ₹1,00,000, your bank may set a lower cap for credit card-based UPI payments.
From Points to Planes: The Conversion Game
Accumulating points is only half the battle; the real value is unlocked during redemption. While you can redeem points for cashback or vouchers, transferring them to airline frequent flyer programs often yields significantly higher value, sometimes up to 4x more. This is the crucial step to getting those 'free' flights. Banks with premium cards, like HDFC Bank and Axis Bank, have partnerships with various airlines. You can convert your bank's reward points into airline miles, such as Vistara's CV Points or Singapore Airlines' KrisFlyer miles. The process typically involves logging into your credit card's rewards portal, selecting the 'Points Transfer' option, choosing your preferred airline, and entering your frequent flyer membership number. It's essential to check the transfer ratio, which dictates how many miles you get per point. A 1:1 ratio is excellent, but ratios can vary. Once the miles are in your airline account, you can book award flights directly, paying only for taxes and fees.
A Realistic Path to a Free Flight
Let's put this into perspective. Suppose you spend ₹40,000 a month on eligible UPI and other credit card expenses using a card that gives you an effective reward rate of 1.5%. Over a year, you would spend ₹4,80,000 and accumulate 7,200 points or miles. While this might not be enough for an international business class ticket, it could easily cover a one-way domestic flight on a low-cost carrier or significantly discount a round trip. For instance, many domestic routes can be booked for 5,000-8,000 miles one-way. By strategically channeling all your everyday expenses through a rewards-earning UPI-linked credit card, you are consistently building a travel fund that can offset future flight costs, making your money work smarter for you.
