Federal Bank and Paisabazaar have launched the Federal Bank Paisabazaar Paisaback Credit Card on September 10, 2026, offering 7.5% cashback on eligible grocery purchases made online and offline. According to reports from Business Standard, the card operates on the RuPay network and covers purchases at major supermarkets and quick-commerce platforms including DMart, Reliance Fresh, Star Bazaar, Nature's Basket, Blinkit, Zepto, Swiggy Instamart, and BigBasket. The card was launched at the Global Fintech Festival in Mumbai and carries a ₹500 joining fee and ₹500 annual fee, which is waived if the cardholder spends ₹1.5 lakh or more annually. As per Business Standard, the card was designed around recurring household expenses, with Santosh Agarwal, CEO of Paisabazaar, stating that credit card rewards are most valuable when they translate into meaningful savings on expenses consumers make every month.
The card's primary attraction is its 7.5% cashback rate on grocery spending, but comes with a maximum monthly cashback benefit of ₹1,000 across all eligible transactions. At the 7.5% rate, spending of approximately ₹13,333 on eligible transactions would be required to reach the monthly ₹1,000 cashback cap. Additional eligible grocery spending beyond this threshold would not generate cashback above the monthly ceiling. The cashback is credited as Cash Points directly to the customer's account with a one-year validity period. According to Business Standard, the UPI cashback is applicable to transactions above ₹2,000 but excludes grocery, fuel, and travel categories. For consumers with relatively low grocery spending, the headline rate may translate into smaller absolute savings - for example, ₹5,000 of eligible grocery spending would generate ₹375 in cashback, while ₹10,000 would generate ₹750. The card's value proposition is straightforward: the more of your eligible grocery spending that falls within the cashback category, the more useful the card becomes for regular grocery shoppers.
Beyond grocery purchases, the card offers 1% cashback on eligible POS and e-commerce transactions and 0.5% cashback on eligible UPI transactions above ₹2,000. According to Business Standard, the UPI cashback is applicable to transactions above ₹2,000 but excludes grocery, fuel, and travel categories. The card also provides a fuel surcharge waiver of up to ₹100 per billing cycle. The 0.5% UPI cashback comes with exclusions, specifically not applicable to grocery, fuel, and travel categories. The card is available on the RuPay network, allowing eligible UPI transactions through the credit-card-linked UPI ecosystem, subject to the stated exclusions and transaction conditions.
According to Santosh Agarwal, CEO of Paisabazaar, as reported by Business Standard, the card was designed around recurring household expenses, stating that "credit card rewards are most valuable when they translate into meaningful savings on expenses consumers make every month." Saugata Basu, Senior Vice President and Head of Retail – Cards and Personal Loans at Federal Bank, emphasized that the card rewards customers on everyday spending, particularly essential categories such as groceries. "We believe this product will redefine how customers perceive value from their everyday spending," Basu said. The card may appeal to households with regular grocery expenses who want to avoid using multiple cards for category-specific rewards. For consumers considering the card primarily for cashback, the annual spending threshold is an important factor, as the fee waiver depends on meeting the specified spending level, while the cashback itself remains subject to the ₹1,000 monthly cap and the card's eligibility conditions.
