October 26, 2025 · 10 mins read
Santosh Kumar
In recent years, RuPay credit cards have become extremely popular in India, primarily because of their acceptance through the Unified Payments Interface (UPI) and increased usage for both online and offline transactions. At the same time, fixed deposit (FD) backed credit cards have emerged as a way to improve or establish a credit profile that is accessible to most users. The intersection of these two ideas leads to an important question: Can you get a RuPay credit card against a fixed deposit?
There are a few banks in India that issue RuPay credit cards that are backed by a fixed deposit. The availability, eligibility, and benefits of these cards vary somewhat between banks. To get a good understanding of how they work, it is useful to begin by defining what a RuPay credit card is, how an FD secured credit card works, and why that is important.
RuPay is India’s homegrown card payment network introduced by the National Payments Corporation of India (NPCI). RuPay cards are intended for domestic transactions and have begun to expand usage internationally with other global networks. Also, starting in 2023, RuPay credit cards can now be linked directly with the UPI system, which allows users to make contactless payments via UPI apps such as Google Pay, PhonePe, or Paytm, which is tremendously valuable to modern-day consumers.
A credit card that is issued against a fixed deposit is referred to as a secured credit card. Regular credit cards are issued based on your salary or credit score, whereas secured credit cards' repayment is guaranteed by the funds you place in a fixed deposit with the bank. The bank will keep your FD as collateral and issue credit, which is a percentage of the FD value — likely between 75%-90% of the FD.
This model reduces risk for the bank and is a good entry-level option for consumers with limited credit history or no credit history. FD-backed credit cards are also available for consumers who do not meet the eligibility criteria for unsecured cards, but would like to take advantage of cashback, reward points, and ease of payment online.
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Yes, it is quite possible to obtain a RuPay credit card against a fixed deposit (FD). A number of public and private sector banks, as well as small finance banks, have launched RuPay versions of secured credit cards to enhance financial inclusion. In offering this secured credit card against an FD, banks are allowing their customers to use the RuPay payment network and reap the benefit of using a secured credit card backed by their FD.
The card will operate in a similar fashion to other FD-enabled cards issued by banks, except that it is on the RuPay network. It is offered to individuals who maintain an FD with the relevant bank, and the limit is based on the amount held in the fixed deposit. Purchases, bill payments, and online transactions can be made using these cards, and the FD will remain pledged with the bank until the card account is either closed or upgraded.
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A fixed deposit-backed RuPay credit card has several advantages that first-time users and individuals who want to manage credit more responsibly will find appealing. Because the card is secured with a deposit, there is typically a quicker and easier approval process, even for individuals with skinny credit profiles. The RuPay network has lower transaction fees and makes UPI payments seamless, allowing users more flexibility than other credit networks.
Another major perk of the RuPay credit card is that the RuPay ecosystem functions in a regulated and managed manner within India. Because of this, transactions will be more trustworthy, and processing fees will remain minimal, especially for merchants. Additionally, with RuPay credit cards now available on UPI, it will now be effortless for small vendors to accept cashless payments; users will be able to purchase with credit almost anywhere they want by using their mobile phone.
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While the eligibility conditions differ from bank to bank, there are some general conditions that banks have in common. The applicant needs to have an active fixed deposit with the bank and also needs to be an Indian resident aged 18 and above. The FD also should have a minimum value, which typically is ₹10,000 or greater, and a tenure of a minimum of six months.
The deposit cannot be subject to any lien or already secured for other loans. Most banks specify that the FD should be kept solely for the purpose of securing the credit card. In addition to this, applicants should not have a history of loan defaults or major credit problems. Since the card is secured, the credit score restriction is much less stringent than in traditional cards.
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Applying for a RuPay credit card using a fixed deposit is easy. You can either go to the bank's website or visit the nearest location. If you already have an FD with that bank, you can just tell them to link it with that application. Some banks also have instant approvals for eligible customers through online banking.
During the application, you will specify that you would like the RuPay option of a secured credit card. The bank will then place a lien on your FD and will issue you a credit card with a limit based on that amount. After your credit card is approved, it will be sent to you, and you can use it like any other credit card, including making UPI-linked payments.
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When it comes to RuPay credit cards against fixed deposits, there are many benefits other than easy approval. Cardholders can avail of all the standard features of a credit card, including reward points, fuel surcharge waivers, discounts on dining, and EMI conversion. Since the card is backed by a fixed deposit, you still earn interest on your FD while using the card - that is, your money is still generating returns while you hold and use the credit card.
Another important feature is the UPI linkage. With RuPay credit cards, you can make UPI payments without using either a debit card or a bank account. This feature helps bridge the gap between all the new digital banking functions we have at our disposal and the convenience of using a credit card. Payments via UPI on your RuPay credit cards are treated in the same way as any other credit transaction and simply show up on your monthly statement.
In addition to everything else, the secured balance nature of the card lets users control their credit exposure even more safely than normal credit. The potential risk of spending too much or adding on debt is lessened because the credit balance is defined, and the defined balance is based on your own money.
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Because the FD serves as the underlying security for your secured RuPay credit card, it has a direct bearing on the card’s tenure/validity. If you wish to continue holding the secured RuPay credit card after your FD matures, then the bank will generally renew the FD (possibly automatically). If you decide to close the FD, then the card will usually be cancelled and/or converted into an unsecured credit card (pending your eligibility).
Some issuers may be willing to automatically upgrade you to a higher-tier RuPay credit card after a period of responsible credit behaviour. After a period of timely payments and use in accordance with the card's conditions, you may be eligible for an unsecured RuPay credit card, which no longer requires an FD as security.
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A secured RuPay credit card is important for your credit score, whether you have an urgent need for credit or plan to obtain new credit in the future. Each purchase (however large or small), payment (timeliness and paying the balance in full each month), and billing cycle is reported to credit rating agencies (CRA) such as CIBIL or Experian. Timely payments, and/or exceptionally low credit utilisation rates can gradually build your score for obtaining additional credit in the future, to purchase that home or new car!
This is one of the main reasons FD-backed RuPay credit cards are often a good choice for those who are new to credit. They allow you to build a financial footprint safely and in an organised way while preventing rejection or overspending.
When used against fixed deposits, RuPay credit cards have distinct advantages over other networks. RuPay cards are domestically operated, making transactions cheaper and quicker. This is especially relevant for small businesses and local merchants. Additionally, their integration with UPI gives RuPay an advantage for cardholders, allowing them to leverage their credit card limit for digital purchases.
Many banks have also begun to offer RuPay cards that include some form of enhanced reward programmes, a more secure contactless payment option, and benefits that link to existing government products. Now that RuPay has begun to gain traction in some international markets, it is becoming even more relevant.
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A fixed deposit is required only for secured credit cards, but there are RuPay variants for secured and unsecured, depending on your eligibility and the bank.
Most banks ask for a minimum fixed deposit of ₹10,000 to ₹20,000. However, this could vary according to the issuing bank's policies and the limits you want to attain.
Yes. Your fixed deposit will be pledged against the credit limit, but it will still earn interest until maturity as per standard procedures. If you want to retain the fixed deposit when it matures, then you can reinvest it.
Yes. RuPay credit cards can be directly linked to UPI applications like Google Pay, PhonePe, Paytm, etc. You can then use your credit card balance to make instant digital payments online.
If you default on your payment obligations, the bank can recover those dues from your fixed deposit. Therefore, it is critical for you to make timely payments because it is a secured credit card.
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