Key takeaways
- Launched on 14 September 2026 by Federal Bank and Paisabazaar on RuPay.
- 7.5% cashback on groceries at DMart, Reliance Fresh, Star Bazaar, Nature's Basket, Blinkit, Zepto, Swiggy Instamart and BigBasket.
- All cashback is capped at ₹1,000 a month, so 7.5% effectively applies to about ₹13,300 of groceries.
- ₹500 joining and annual fee, with the annual fee waived on ₹1.5 lakh yearly spend.
Groceries are one of the biggest monthly expenses for Indian households, yet most cashback cards give them only a base rate. The Federal Bank Paisabazaar Paisaback credit card, launched on 14 September 2026, targets exactly that gap with 7.5% cashback on supermarkets and quick commerce apps. Here's what it offers, where the catches are and who should get it.
Paisaback at a glance
| Feature | Details |
|---|---|
| Issuer and network | Federal Bank, RuPay |
| Joining fee / annual fee | ₹500 / ₹500 (plus GST) |
| Annual fee waiver | On ₹1.5 lakh yearly spend |
| Groceries | 7.5% at DMart, Reliance Fresh, Star Bazaar, Nature's Basket, Blinkit, Zepto, Swiggy Instamart, BigBasket |
| Other card spends | 1% on eligible POS and online spends |
| UPI | 0.5% on UPI payments above ₹2,000 (excluding grocery, fuel and travel) |
| Monthly cap | ₹1,000 total cashback across all categories |
| Cashback form | Cash Points, valid for one year |
| Fuel | Surcharge waiver up to ₹100 per billing cycle |
| Lounge access | None |
Federal Bank Paisabazaar Paisaback
₹500 + GST · Waived on ₹1,50,000 yearly spend · Forex 3.5%
- 7.5% cashback on groceries at DMart, Reliance Fresh, Star Bazaar, Nature's Basket, Blinkit, Zepto, Swiggy Instamart and BigBasket
- Low ₹500 fee, waived on ₹1.5 lakh yearly spend
- RuPay card, so it works on UPI (0.5% cashback on UPI payments above ₹2,000)
Watch out: All cashback capped at ₹1,000 a month, so 7.5% only applies to about ₹13,300 of groceries
The ₹1,000 cap is the key detail
The cap covers all cashback, not just groceries. At 7.5%, you hit ₹1,000 with about ₹13,300 of grocery spending in a month. Anything above that earns nothing more, and any 1% or UPI cashback in the same month also counts toward the same ₹1,000. So the card works best for households spending roughly ₹6,000–13,000 a month on groceries.
How much can you earn?
| Spending pattern | Paisaback | HSBC Live+ | SBI Cashback |
|---|---|---|---|
| ₹6,000 groceries a month ₹13,000/month | ₹6,240 | ₹10,341 ★ | ₹1,821 |
| ₹12,000 groceries a month ₹21,000/month | ₹11,880 | ₹15,300 ★ | ₹4,440 |
| ₹20,000 groceries a month ₹32,000/month | ₹12,000 | ₹15,480 ★ | ₹6,720 |
Estimated yearly value after fees. Paisaback's forex markup was not published at launch, so we assume 3.5% in our model; it doesn't affect these domestic examples.
Who should get Paisaback
- Families whose biggest card spend is groceries, at DMart, supermarkets or quick commerce apps.
- People who want a low-fee second card to pair with an online cashback card.
- RuPay-on-UPI users who want a card they can link to UPI apps.
Who should skip it
- People who spend well over ₹13,000 a month on groceries and want one card for all of it; HSBC Live+ (10% up to ₹1,200 a month) or a two-card setup may do better.
- Travellers: it has no lounge access, and its forex markup wasn't disclosed at launch.
- People who forget to redeem: Cash Points expire after a year.
Paisaback vs the alternatives
vs HSBC Live+: Live+ gives 10% on groceries, dining and food delivery up to ₹1,200 a month, with a higher fee (₹999). It's better for combined grocery and restaurant spending; Paisaback is cheaper and better for pure groceries at DMart and supermarkets.
vs SBI Cashback: SBI Cashback's 5% applies to online spends (up to ₹2,000 a month), which covers quick commerce but not DMart in-store. Paisaback's 7.5% covers both online and offline grocery merchants.
vs Swiggy HDFC cards: better if Instamart and Swiggy food delivery are your main spends.
Redeeming Cash Points
Cashback is credited as Cash Points, valid for one year, rather than directly to your statement. Redeem regularly, for example every quarter, so nothing expires. Track expiry with our points expiry tracker.
How to apply
The card is offered through Paisabazaar's partnership with Federal Bank. Eligibility criteria (minimum income and age) were not published in launch coverage, so check on the application page. As with any card, applying triggers a credit enquiry, so don't apply for several cards at once.
How to use it well
- Put groceries on Paisaback until you hit about ₹13,300 in a month.
- Switch to another card for groceries after that, and for most other spending.
- Redeem Cash Points regularly so none expire.
- Spend ₹1.5 lakh a year across the card to waive the ₹500 annual fee.
See it next to every other grocery option in our Blinkit, Zepto and BigBasket guide and best card for DMart. Full details on the Paisaback card page.
FAQs
What is the Federal Bank Paisaback credit card?
A RuPay cashback card from Federal Bank and Paisabazaar, launched on 14 September 2026, that gives 7.5% cashback on groceries at supermarkets and quick commerce apps.
What is the annual fee of the Paisaback card?
₹500 joining fee and ₹500 annual fee, plus GST. The annual fee is waived on ₹1.5 lakh yearly spend.
Is there a cap on Paisaback cashback?
Yes. Total cashback is capped at ₹1,000 a month across all transactions.
Does Paisaback work on UPI?
Yes. It is a RuPay card, and gives 0.5% cashback on UPI payments above ₹2,000, excluding grocery, fuel and travel.
Sources
- The Tribune: Paisabazaar and Federal Bank launch Paisaback RuPay credit card (14 Sep 2026)
- Business Standard: Paisaback launch press release
