7.5% Grocery Cashback: Is This Card Worth Your ₹500?

Paisabazaar and Federal Bank launched a RuPay credit card giving 7.5% cashback on groceries at DMart, Blinkit, BigBasket and more. Annual fee is ₹500, waived if you spend ₹1.5 lakh a year.

Here's what happened: Paisabazaar and Federal Bank launched the Paisaback RuPay Credit Card at the Global Fintech Festival, offering 7.5% cashback on grocery spends at major supermarkets and quick-commerce apps.. The card also gives 1% cashback on general POS and e-commerce transactions, and 0.5% cashback on UPI payments above ₹2,000 — an unusual benefit for a credit card on the RuPay network.. The annual fee is ₹500, but is fully waived for cardholders who spend ₹1.5 lakh or more in a year across all eligible categories..

What you should do: Calculate your average monthly grocery spend — if it's above ₹5,000, this card can return ₹375+ per month, easily covering the ₹500 annual fee in the first month alone.. Check whether your preferred stores (DMart, Blinkit, BigBasket, Zepto) are on the eligible merchant list before applying, since cashback on 'eligible' purchases may exclude some categories like alcohol or non-grocery items.. Compare this card against your existing cashback or rewards card — if your current card gives less than 3% on groceries, consider switching or adding this as a dedicated grocery card..

The 0.5% cashback on UPI transactions above ₹2,000 is rare — most credit cards earn zero on UPI. If you pay rent or large bills via UPI, this adds up quietly over a year.