Federal Bank and Paisabazaar launch Paisaback, a 7.5% grocery cashback card on RuPay
Paisabazaar and Federal Bank launched the Paisaback RuPay credit card with NPCI at the Global Fintech Fest, announcing it in a joint release dated 14 September 2026. It pays 7.5% in Cash Points on groceries at supermarkets and quick-commerce apps, 1% on other POS and e-commerce spend and 0.5% on UPI payments above ₹2,000, with all cashback capped at ₹1,000 a month. Federal's MITC prices it at ₹500 a year, waived on ₹1.5 lakh of spend in the preceding year, and credits the Cash Points to the holder's Paisabazaar app wallet. Nothing published offers lounge access or an airline or hotel transfer.
What changed
Launch · Federal Bank
Before
No Paisabazaar card on Federal Bank's licence — Paisabazaar's cards ran on RBL, SBM and YES
After
Federal Bank Paisabazaar Paisaback Credit Card on RuPay: 7.5% back on groceries, 1% on other card and online spend, 0.5% on UPI above ₹2,000, all cashback capped at ₹1,000 a month; ₹500 a year, waived at ₹1.5 lakh of annual spend
The card this affects
Paisabazaar now has a fourth bank. Its new card, the Paisaback, is issued by Federal Bank on RuPay and was launched with NPCI at the Global Fintech Fest in Mumbai; the two companies’ joint release is dated 14 September 2026. It joins Paisabazaar’s cards on RBL, SBM and YES, all of which are already on our cashback board.
The headline is groceries. The card pays 7.5% in Cash Points on grocery spend, online and offline: DMart, Reliance Fresh, Star Bazaar and Nature’s Basket at the till, and Blinkit, Zepto, Swiggy Instamart and BigBasket on the phone. Other eligible card and online spend earns 1%. UPI payments above ₹2,000 earn 0.5%, but grocery, fuel and travel UPI payments don’t get that rate.
The ceiling is the catch. Paisabazaar caps all cashback at ₹1,000 a month. At 7.5% you reach the cap after about ₹13,300 of grocery spend in a month, and the card can never pay back more than ₹12,000 a year. A ₹500 annual fee is the price of entry. Federal’s MITC waives it once you spend ₹1.5 lakh in the preceding year, and lists a fuel surcharge waiver of up to ₹100 per billing cycle. The Cash Points go to your Paisabazaar app wallet, not your card statement, and they have to be redeemed while still valid.
What it is not: a travel card. Nothing Federal or Paisabazaar has published offers lounge access, an airline or hotel transfer, or a reduced forex markup. We carry it on the cashback board. We have read Federal’s MITC only through search-engine snippets so far. The forex markup, the late-fee ladder and the full exclusion list are still blank on our page until we can read the whole document.
Before: No Paisabazaar card on Federal Bank’s licence. Paisabazaar’s cards ran on RBL, SBM and YES.
After: Paisaback on RuPay. 7.5% on groceries, 1% on other card and online spend, 0.5% on UPI above ₹2,000, all of it inside a ₹1,000-a-month cap. ₹500 a year, waived at ₹1.5 lakh.
Sources: the joint launch release (ANI) · Federal Bank’s MITC · the card on travelwith.cc.
Sources
- The story’s source: theprint.in
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