Unpacking Niyo Solutions’ zero forex markup cards
Mint breaks down the salient features to help you decide whether you should get it. Niyo Global This is a travel card that is offered both as a debit and credit card. Do note that it is not a prepaid forex card.
The credit card is offered in association with SBM bank. “We started offering credit cards in January this year and the reward system was launched in July," said Bagri. Note that the Reserve Bank of India (RBI) has barred SBM bank from transactions under the Liberalised Remittance Scheme (LRS).
This means if you open an account with SBM bank, international transactions done with debit card will not get through. “Domestic transactions with debit card and international payments made with credit card will work," said Bagri. Reward programmes are available with both the debit and credit card.
The secured credit cards have a reward rate of 1%, which means you earn ₹1 on every ₹100 spent. The rewards are credited in the form of ‘global coins’, with each coin valued at 10 paise. The reward rate on debit card transactions is 0.2%, which means every ₹100 spent earns you 20 paise or 2 global coins.
These reward rates apply to domestic transactions. As for international transactions, debit cards don’t earn anything while the reward rate on credit cards is 0.2%. A customer can earn global coins on all domestic transactions, except on fuel charges and rent payments.
The coins get accumulated in the Niyo account and can be redeemed on your purchases made with Niyo card after earning a minimum ₹100 worth of coins (1,000 coins). “Once you have 1,000 coins, ₹100 is automatically redeemed from global coins on the next purchase that you make," Bagri explained. Global coins can be redeemed on both domestic and international
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