Verification note
Card information was checked on September 13, 2026 against Paisabazaar's product page and reputable launch coverage. Fees, rewards, exclusions, availability and redemption rules are time-sensitive.
A dedicated Federal Bank product or MITC page was not located during review. Confirm the latest issuer terms before publishing or applying.
The short answer
Federal Bank and Paisabazaar have introduced a co-branded RuPay credit card focused on everyday grocery spending.
The Federal Bank Paisabazaar Paisaback Credit Card currently offers 7.5% value-back as CashPoints on eligible grocery purchases. It offers lower rates on other eligible card and UPI transactions.
The headline rate looks attractive, but customers should understand the monthly reward cap, exclusions and CashPoint redemption process before applying.
Main features at a glance
| Feature | Published condition |
|---|---|
| Card network | RuPay |
| Grocery rewards | 7.5% CashPoints on eligible grocery spending |
| Other card spending | 1% CashPoints on eligible spending |
| UPI spending | 0.5% CashPoints on eligible transactions above ₹2,000 |
| Monthly reward cap | 1,000 CashPoints |
| CashPoint value | 1 CashPoint = ₹1 |
| Joining fee | ₹500 plus applicable taxes |
| Annual fee | ₹500 plus applicable taxes |
| Annual-fee waiver | ₹1.5 lakh of qualifying annual spending |
Every figure is time-sensitive. Reconfirm the latest product terms before relying on it.
How the grocery rewards work
Paisabazaar currently advertises 7.5% CashPoints on eligible grocery transactions. Its examples include DMart, Reliance Fresh, LuLu Hypermarket, Blinkit, Zepto, BigBasket, Swiggy Instamart and Flipkart Minutes.
A merchant name alone may not always determine eligibility. Rewards commonly depend on the merchant category used when the transaction is processed. Check the posted transaction if an expected reward is missing.
Total CashPoint earnings are currently capped at 1,000 per month. At a 7.5% rate, about ₹13,334 of fully eligible grocery spending would reach that cap.
Illustrative calculation
₹13,334 × 7.5% ≈ ₹1,000
This assumes every rupee qualifies and no other transaction has already used part of the monthly cap.
Rewards on other purchases
The card currently offers 1% CashPoints on other eligible point-of-sale and online purchases.
Published exclusions include:
- Wallet loading
- Fuel
- Jewellery
- EMI conversions
- Rent and utilities
- Insurance and education
- Government services
- Hospitals and tolls
- Telecom equipment
- Railway transactions
- Automotive shops
These exclusions may change. Calculate the card's value using qualifying spending, not the complete monthly bill.
How UPI rewards work
Because this is a RuPay card, it may be linked to supported UPI applications under applicable NPCI, issuer and app conditions.
The published product information offers 0.5% CashPoints on eligible UPI transactions above ₹2,000. Grocery, fuel and travel transactions are excluded from this UPI reward category.
Editorial interpretation: Grocery rewards are the card's main attraction. The UPI reward may be less useful for customers who mainly make small payments.
What are CashPoints?
The rewards are issued as CashPoints rather than automatic statement cashback.
Paisabazaar currently states that:
- One CashPoint is worth ₹1.
- CashPoints are credited to the customer's Paisabazaar in-app wallet.
- They should be redeemed within one year of being earned.
Editorial interpretation: Check minimum redemption amounts and other restrictions before treating CashPoints like automatic cash.
Fees and annual-fee waiver
The product page currently lists a joining fee and annual fee of ₹500 plus applicable taxes.
The annual fee may be waived after ₹1.5 lakh of qualifying annual spending. That equals an average of ₹12,500 a month, although spending will vary during the year.
Do not buy something unnecessary only to receive a ₹500 fee waiver. Confirm which transactions count, the calculation period and how refunds affect eligible spending.
The monthly cap matters
The advertised maximum of ₹12,000 a year is 1,000 CashPoints multiplied by 12 months. It is not guaranteed savings.
A customer would need to reach the monthly cap every month while satisfying all eligibility and redemption rules.
Editorial interpretation: Compare the card using your real grocery bill. A person spending ₹4,000 monthly on eligible groceries will earn much less than the advertised maximum.
Who may find this card useful?
May suit you if
- You regularly make eligible grocery purchases.
- You are comfortable redeeming through Paisabazaar.
- You want a RuPay card for supported UPI payments.
- You normally pay the Total Amount Due.
May be less useful if
- You spend little on qualifying groceries.
- You want automatic statement cashback.
- Most spending falls into excluded categories.
- Your normal UPI payments are below ₹2,000.
Confirmed facts and interpretation
Confirmed
- Federal Bank and Paisabazaar introduced the card.
- It operates on the RuPay network.
- Eligible grocery spending earns 7.5% CashPoints.
- Other eligible card and UPI spending earns lower rates.
- Monthly reward earnings are capped.
- Joining and annual fees currently apply.
Editorial interpretation
- Grocery spending is the main commercial benefit.
- UPI value may be limited for frequent small payments.
- Use eligible spending when estimating value.
- Do not carry debt merely to earn CashPoints.
Key takeaways
The 7.5% rate applies only to eligible grocery transactions.
Reward earnings are capped at 1,000 CashPoints per month.
One CashPoint currently has a published value of ₹1.
UPI rewards require an eligible transaction above ₹2,000.
Several common spending categories are excluded.
Joining and annual fees are currently ₹500 plus taxes.
Confirm the latest issuer terms before applying.
Frequently asked questions
Is the Paisaback Credit Card lifetime free?
No. The currently published joining and annual fee is ₹500 plus taxes. The annual fee may be waived after qualifying spending.
Is 7.5% cashback available on every transaction?
No. It applies to eligible grocery purchases. Other qualifying card and UPI transactions have different rates.
Is the monthly cap shared across reward categories?
The page describes a monthly cap on cashback earnings. Confirm its application across categories in the current terms.
Can the card be used for UPI?
It is a RuPay card and may be linked to supported UPI apps, subject to current issuer, NPCI and app conditions.
Are CashPoints credited to the statement?
Paisabazaar says they are credited to its in-app wallet. Check the latest redemption process before applying.
Sources
Sources verified September 13, 2026. Confirm the latest Federal Bank MITC, fees, rewards, exclusions, availability and redemption rules before applying.