Source check: 11 September 2026. Paisabazaar's product page was updated that day and says applications will start soon. This is a document-based preview, not a claim of a verified launch date or a hands-on card review.
Federal Bank and Paisabazaar's Paisaback Credit Card has a grocery-first proposition: 7.5% CashPoints on eligible grocery purchases, with one CashPoint worth one rupee. That makes the headline easier to interpret than a rewards percentage with an undisclosed conversion, but the monthly cap, payment channel and redemption conditions still determine its usefulness.
There is an availability caveat before any recommendation to apply. The partner's product page prominently says "Applications for Federal Paisaback Card Will Start Soon." Its FAQ describes onboarding and an instant virtual card after successful completion, but that description of a process is not proof that general applications are already open.
We checked the official co-brand partner's product information and the linked Federal-issued Most Important Terms and Conditions, or MITC. The reward claims come from the partner page; the MITC independently establishes the card's costs rather than reproducing the full rewards table.
Three earning routes, one allowance
| Spending route | Advertised earning | Important restriction |
|---|---|---|
| Eligible grocery purchases | 7.5% CashPoints | Merchant and transaction eligibility apply |
| Other eligible POS and e-commerce purchases | 1% CashPoints | A substantial excluded-category list applies |
| Eligible UPI purchases above INR 2,000 | 0.5% CashPoints | Grocery, fuel and travel are excluded from this particular UPI category |
| All reward categories together | Maximum 1,000 CashPoints per month | Not a separate INR 1,000 cap for each route |
| Redemption | One CashPoint equals INR 1 | In-app wallet rewards must be redeemed within one year of accrual |
The page names grocery examples including DMart, Reliance Fresh, LuLu Hypermarket, Blinkit, Zepto, Swiggy Instamart, BigBasket and Flipkart Minutes. Those examples are not evidence that every purchase at a similarly named merchant, through every payment route, qualifies.
The card supports RuPay. That establishes UPI compatibility, not a universal promise of the headline grocery return on UPI.
What the monthly cap does to the headline
At the stated grocery rate, INR 10,000 of qualifying purchases would generate INR 750 in CashPoints before considering any undisclosed rounding mechanics. INR 20,000 would nominally generate INR 1,500, but the shared monthly allowance limits the actual eligible reward to INR 1,000.
Approximately INR 13,333 of qualifying grocery spending would use that allowance at 7.5%, subject to rounding. Once the shared cap is exhausted, applying the headline rate to additional monthly spending overstates the reward.
Mixing categories does not create another allowance. For example, INR 10,000 of eligible groceries would nominally earn INR 750, while INR 50,000 of eligible other purchases would nominally earn INR 500. Their INR 1,250 combined calculation still runs into the INR 1,000 total ceiling.
The advertised potential INR 12,000 annual reward is therefore a gross maximum based on repeatedly reaching the monthly ceiling. It is not a guaranteed saving after fees, taxes, exclusions or unused points.
Two UPI details need clarification
First, the main benefit text specifies transactions above INR 2,000, while the exclusion wording refers to UPI transactions below INR 2,000. Those descriptions do not clearly resolve a transaction of exactly INR 2,000. Treat that boundary as unconfirmed, not as a guaranteed qualifying amount.
Second, grocery is excluded from the 0.5% UPI category. The page does not clearly establish whether an otherwise eligible grocery purchase paid through UPI receives the 7.5% grocery rate or no reward. We would not advertise either interpretation as settled without clearer terms.
Payment acceptance and reward eligibility are different questions. A successful RuPay UPI payment does not itself prove that a particular cashback category applies.
The fee table is less ambiguous
| Cost | Published condition |
|---|---|
| Joining fee | INR 500 plus applicable taxes |
| Annual fee | INR 500 plus applicable taxes; waiver at INR 1.5 lakh spending in the preceding year |
| Revolving interest | 3.75% monthly, stated as 45% annually |
| Foreign-currency markup | 3.5% |
| Cash withdrawal | 2.5% or INR 500, whichever is higher; interest from the withdrawal date |
The MITC also describes transaction-specific convenience charges, including rent and wallet loading. It should be read before using the card for a large payment simply to reach the annual-fee threshold.
Carrying a balance changes the economics much more than small differences in reward rates. A 7.5% purchase incentive is not protection against revolving interest, and the maximum advertised interest-free period is not available on every transaction under every repayment pattern.
Wallet rewards are not automatic statement credits
CashPoints are credited to the Paisabazaar in-app wallet and expire if not redeemed within one year. That differs from a credit automatically reducing the card statement. The usable value depends on completing redemption within the applicable conditions, not just seeing a points balance.
The product page excludes rewards on categories including fuel, wallet loading, jewellery, EMI conversions, rent, utility bills, insurance, education, government services, hospitals and railway transactions. A household should remove excluded spending before estimating the return.
Paisaback is worth examining as a capped grocery product, not as unlimited cashback or an established lounge-access card. Before onboarding, confirm application availability, grocery payment-channel eligibility, the exact UPI threshold and the latest redemption rules. Those unanswered details are more consequential than a generic promotional banner.
Primary sources
- Paisabazaar: Federal Bank Paisaback product page, benefits and FAQs, updated 11 September 2026.
- Federal Bank Paisaback MITC, particularly pages 1-3 for costs. The hosting directory is not a publication date.
