RBL Bank Novio RuPay Credit Card: Minimal Rewards, Maximum Fees—A Disappointing Deal?

The RBL Bank Novio RuPay Credit Card is designed to provide users with tools for budget management, rewards accrual, and transactional convenience. This is a co-branded credit card based on the revenue sharing agreement between RBL Bank and Credilio.com.

This overview will examine the key features and advantages of the RBL Bank Novio RuPay Credit Card, as well as its limitations and associated fees. The information presented aims to provide a factual basis for evaluating the card's suitability for individual financial needs.

Welcome Reward

One of the most appealing features of the RBL Bank Novio RuPay Credit Card is its welcome reward for new users. Upon activation, cardholders can expect to receive a bonus benefit, which may vary from cashback to reward points, depending on current promotions. For now, users earn 2,000 reward points on spending Rs. 5000 or more within 30 days of card issuance.

Reward System

The reward structure of the RBL Bank Novio RuPay Credit Card is designed to cater to a wide range of consumer habits. Cardholders earn reward points with every transaction, and the earning rate varies based on spending categories.

Cardholders will earn 2 reward points for every Rs. 100 spent on online. The value of 1 reward point is Rs. 0.25, so the effective cashback rate is 0.50%. For every other spent, cardholders will get 1 reward point that translates to a cashback rate of 0.25%.

The accumulated points can be redeemed for a variety of options: travel bookings, shopping vouchers, or even gift cards for popular brands. This flexibility ensures that users can tailor their rewards to match their spending preferences and lifestyle habits.

Milestone Benefits

Another major perk of the RBL Bank Novio RuPay Credit Card is its milestone benefits, which incentivize users to increase their card usage. When cardholders reach specific spending thresholds within a year, they unlock additional rewards.

For instance, upon reaching a spending limit of INR 1,50,000, users will earn an additional 1,000 reward points, and on achieving a spending limit of INR 3,00,000, users will get 2000 reward points.

Ultimately, milestone benefits not only enhance earning potential but also promote responsible spending habits, benefiting users in the long run.

UPI Feature

In this digital age, the RBL Bank Novio RuPay Credit Card includes a Unified Payments Interface (UPI) integration that enhances user convenience. This feature allows users to link their credit card with UPI apps, enabling smooth and instant payments without needing a physical card.

This integration simplifies transactions for daily expenses, bill payments, and online shopping. Additionally, UPI transactions come with multiple layers of security, safeguarding user information while providing peace of mind during purchases. With the popularity of digital payments on the rise, this feature aligns perfectly with current consumer behaviors, making it an appealing choice for tech-savvy users.

Potential Drawbacks

Limited Acceptance of RuPay Network

RuPay cards may not be universally accepted, especially at international merchants or certain online platforms. This could inconvenience frequent travelers or users making cross-border transactions.

Modest Reward Rates

The card offers a low cashback equivalent of 0.5% for online spends (2 points/₹100) and 0.25% for other spends (1 point/₹100). Competing cards often provide higher reward rates, making this less appealing for heavy spenders.

High Spending Thresholds for Milestone Benefits

Earning 1,000 reward points (₹250) requires spending ₹1.5 lakh annually, while 2,000 points (₹500) need ₹3 lakh. These milestones demand significant spending for relatively small rewards, diminishing their value for moderate users.

Annual Fee and Hidden Charges

While the annual fee can be offset by rewards, casual users might struggle to justify the cost. Additional charges like late payment fees, cash advance fees, and interest rates (if balances are unpaid) could add up quickly for undisciplined spenders.

Fees and Charges

• Joining fee: INR 500/- plus taxes.

• Annual fee: INR 500/- plus taxes.

• Foreign currency markup: 3.50%.

• Cash advance fee: 2.5% or INR 500, whichever is higher.

• Late payment charges: INR 100 to 1300.

• Reward redemption fee: INR 99 per redemption request.

• Interest rate: 3.99% monthly, 47.88% annually.

  
  

Final Thoughts

The RBL Bank Novio RuPay Credit Card, despite its UPI integration and milestone benefits, falls short as a value-for-money option due to its low reward rates and high fees relative to benefits. The spending thresholds for milestones demand significant expenditure for minimal rewards, making them impractical for average users.

Additionally, the card’s limited acceptance on the RuPay network (especially internationally) and steep charges, 3.5% forex markup, 47.88% annual interest, and ₹99 redemption fees further diminish its appeal. Competing cards offer better reward structures and broader acceptance, making this card a suboptimal choice for most consumers seeking genuine value or high cashback returns.

If you want to read a more detailed review of this card and find out its AI-powered unbiased rating, click here.

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