Top 10 Banks Offering Cashback on UPI Payments

“Pehli baar lag raha hai paisa kamaaya, chai peeke!”

Ramesh, a 29-year-old marketing executive from Ahmedabad, said with a smile, clearly surprised. He’d just paid for his morning chai via UPI and got a ₹10 cashback notification. He laughed and showed his screen to anyone who’d look.

After that, he started using UPI for almost everything. 

Groceries worth ₹500? UPI. Dinner for ₹1,200? UPI. Even his ₹149 OTT subscription — all paid through cashback-friendly apps. In just two months, Ramesh had saved ₹780, enough to fill up his petrol tank.

It’s not a huge amount, but still — getting some money back on things you’re already spending on just feels good.

In this blog, we’ll show you how to make the most of these cashback deals — not just on UPI, but also on other payment methods you might be using every day without realising you could be saving.

Let’s start with the first one: Why UPI Cashback is the New "Buy 1 Get 1 Free" — and why banks are doing everything to get your attention.

Why UPI Cashback is the New "Buy 1 Get 1 Free"

Remember when the “Buy 1 Get 1 Free” deal felt like the best thing ever, mostly on pizzas or movie tickets? 

Well, UPI cashback is pretty much the grown-up version of that, but for everything.

Whether it’s paying your electricity bill or splitting the dinner check, cashback just happens automatically when you use UPI.

Ramesh, for example, couldn’t believe his eyes when he paid ₹20 for chai and got ₹10 cashback. He laughed, showing his screen to everyone around. And in just two months, he’s saved ₹780 in cashback, all from things he would’ve bought anyway.

So, why are banks offering cashback?

• Customer Retention: Banks simply adore that you remain loyal to them. Cashback makes you return for more.

• Competing with Digital Wallets: Since digital wallets such as Paytm and PhonePe are providing cashback, banks also wish to have a piece of the action.

• Increasing UPI Transactions: The more UPI transactions, the more money for the banks, so they're promoting it using cashback.

It doesn’t matter if it’s ₹10 or ₹100 — cashback is like a small win every time you make a payment. 

And in today’s world, where every little bit counts, why wouldn’t you take it?

SBI – "Khata Khola, Cashback Tola"

If SBI were a person, it would be that friendly neighbourhood uncle who’s always around, reliable, trustworthy, and now, even giving out cashback! 

With its UPI cashback offers via the YONO app, SBI is turning everyday transactions into savings, whether you’re paying bills, recharging your phone, or shopping for groceries.

For example, Amit, a 32-year-old IT professional from Bengaluru, decided to use YONO for his mobile recharge and received cashback. Later, he purchased at a local store via a merchant QR scan and earned even more cashback.

Cashback Breakdown:

With SBI, you get the best of both worlds — reliable service and extra savings on the side. If you're already using YONO, these cashback offers are just the cherry on top.

HDFC Bank – Cashback with Class

HDFC Bank is like the VIP lounge of the banking world — sleek, sophisticated, and always bringing something extra to the table. 

With their PayZapp UPI rewards, they’ve made paying for things a lot more rewarding. Whether it’s paying at a store or booking a movie ticket, every transaction feels like a little win.

What’s on Offer:

• Cashback Range: Up to 5% of the transaction (T&C apply)

• Eligible Transactions:

• Payments via UPI at partnered merchants
• Movie ticket bookings
• Online shopping

For example, Vikram, a 28-year-old marketing manager from Mumbai, booked movie tickets for a weekend hangout using PayZapp and earned cashback on the spot. 

Later, he spent ₹600 at a local restaurant using UPI and got cashback again. Simple, easy, and quite rewarding!

Cashback Breakdown:

With HDFC PayZapp, making payments becomes more than just a transaction — it’s an opportunity to earn a little extra on the side.

ICICI Bank – Swipe, Scan, Score

When it comes to making everyday payments feel a little more rewarding, ICICI Bank has stepped up with its 

iMobile Pay and Pockets apps.

Whether you’re recharging your phone, doing some online shopping, or paying at the grocery store, ICICI is offering cashback that makes it feel like you’re getting a little bonus with every swipe and scan.

What’s on Offer:

• 1% to 5% cashback on UPI recharges via the Pockets app
• Up to ₹150 cashback on grocery merchant scans (via UPI)
• No ICICI Account Required: You can enjoy these cashback perks even if you’re not an ICICI account holder!

Offer Highlights:

• UPI Recharges: Get 1% to 5% cashback when you recharge your mobile via the Pockets app. (T&C apply)
• Grocery Payments: Spend at a grocery store with a UPI merchant QR scan and get up to ₹150 cashback.

For example, Neha, a 30-year-old working professional from Delhi, decided to use Pockets for her everyday payments — a mobile recharge and a grocery run. Here’s what she earned:

With ICICI’s iMobile Pay and Pockets apps, it’s never been easier to earn cashback on the things you already do — all it takes is a swipe or a scan!

Axis Bank – Rewards That Stack Up

Not every cashback has to pop up instantly. 

With Axis Bank, you don’t get cashback instantly — instead, you earn EDGE reward points every time you pay through UPI using apps like GPay, PhonePe, or BharatPe. 

Later, you can use those points to get vouchers, discounts, or even cashback.

For example, Snehal, a 34-year-old sales manager from Nagpur, decided to shift his daily spending — groceries, electricity bill, and mobile recharge — to UPI using his Axis account. By the end of the month, his EDGE points were already adding up.

So basically, you keep using UPI like you already do — and quietly collect rewards in the background. Easy, simple, and worth it.

Paytm Payments Bank – The Cashback King

If there’s one name every paanwala, sabziwala, and chaiwala knows, it’s Paytm. 

From kirana stores to online bill payments, Paytm has made earning cashback feel like daily pocket money.

What’s on offer:

Paytm keeps the cashback game strong across everyday spending:

• Scan and pay 5 times a week? Get ₹100 cashback
• Pay your electricity bill via UPI and get ₹25 cashback straight into your wallet
• Even small spends like ₹50 to ₹100 can earn you rewards

For example, Ravi, a 24-year-old MBA student in Jaipur, decided to stick to Paytm for all his daily payments — chai, stationery, groceries, and bills. With just 5 UPI payments in a week and one bill paid via UPI, here’s what he earned:

In short, Paytm doesn’t just talk cashback — it delivers.

Yes Bank – Small Bank, Big Cashback

Yes Bank might not be the biggest player, but when it comes to cashback, they know how to make an impression, especially for UPI users. From groceries to fuel, their cashback offerings are worth checking out.

Read More – How to Change UPI PIN

What’s on offer:

• Up to 5% cashback on fuel and groceries via UPI transactions at selected partners
• ₹50 cashback on spends of ₹500+ at select stores
• ₹100 cashback for first-time UPI users
• Bonus: Earn 1% cashback on all other eligible spends made via UPI transactions

For example, Rohit, a 28-year-old graphic designer from Indore, was looking for better cashback options. He linked his Yes Bank UPI handle to PhonePe, and here’s what he earned over a week of spending:

Yes Bank is offering cashback even on small-ticket purchases, which is a big win for those who prefer regular savings without waiting for big buys.

IDFC FIRST Bank – “UPI Kiya, Cashback Liya”

IDFC FIRST Bank makes it easy to earn cashback just by using UPI for your regular payments. Whether you're paying your bills, grabbing groceries, or making online purchases, they’ve got a little reward for every transaction.

What’s on offer:

• Get ₹100 cashback when you make your first UPI transaction within 15 days of getting your card.
• 1% cashback on UPI transactions through their app.
• 0.5% cashback on other UPI payments, including online shopping.
• Plus, you can earn up to ₹500 cashback every month with a cap of ₹100 per transaction.

For example, Amit, a 30-year-old entrepreneur from Delhi, gave IDFC FIRST Bank’s UPI rewards a shot. Here’s how he achieved his cashback:

Why People Like It: The cashback system is simple, and you don’t need a high balance to enjoy the perks. The app makes it easy to track, and the rewards keep coming even for smaller payments.

Bank of Baroda – Cashback for Everyone

Bank of Baroda (BoB) is making cashback easy and available to all. Whether you’re paying bills or buying everyday items, you can earn cashback with just a few taps on the BoB World app.

What’s on offer:

• Get ₹20 to ₹100 cashback on UPI payments for utility bills and shopping at selected merchants.
• Enjoy cashback on things you do every day, like recharging your phone or paying electricity bills.

Example Offers:

• Get ₹50 cashback when you recharge your phone for ₹200 or more.
• Get ₹100 cashback when you pay your electricity bill via BoB UPI.

For example, Suresh, a farmer from Uttar Pradesh, used the BoB World app to pay for his mobile recharge and electricity bill. Here's how much he saved:

BoB’s cashback offers are easy to use and make saving money simple, especially for people in smaller towns.

AU Small Finance Bank – Big Rewards on Small Spends

AU Small Finance Bank is making everyday payments more rewarding through its AU 0101 app. Whether you're buying groceries, filling up fuel, or paying bills, you can earn cashback and rewards effortlessly.​

What's on Offer:

• Get ₹25 cashback when you register for UPI on the AU 0101 app.
• 1% cashback on all UPI transactions made via any UPI channel.
• Earn 5 coins on each UPI transaction made on the AU 0101 app using the AU SPONT Credit Card.
• Earn 500 coins on your first UPI transaction made on the AU 0101 app using the AU SPONT Credit Card.

For example, Deepak, a freelance photographer from Surat, started using the AU 0101 app to manage his daily expenses. Here's how his cashback added up after using the app for the first time:​

Note: Coins can be redeemed for gifts and gadgets through the AU Rewardz programme. 

Cashback + Debt Consolidation? Yup, It Works

Okay, this might feel like a plot twist in a cashback story — but stick with us.

Debt consolidation combines your several outstanding debts into a new loan with a single monthly payment and a reduced interest rate to help you lower your financial stress.

If you’re dealing with multiple EMIs and credit card bills, things can get messy quickly. Now imagine this: what if your UPI app could help you clean that up and reward you?

Here’s how it works:

Step 1: Consolidate your loans — instead of juggling five EMIs, bring them under one personal loan with a better interest rate.

Step 2: Set up UPI autopay for that one EMI.

Step 3: Use banking apps like HDFC’s PayZapp, Axis’ mobile app, or ICICI’s iMobile Pay — some of them offer cashback even for loan repayments and bill payments.

It’s not just a smoother ride — it’s smarter too.

For example, Khushi, a 27-year-old software engineer from Pune, had a total debt of ₹9,00,000. It was tough to keep up with all the due dates and interest rates. So she decided to consolidate it all into one personal loan.

Before Debt Consolidation

After Debt Consolidation

By switching to a single, lower EMI through UPI autopay, Khushi:

• Reduced her monthly payment by over ₹7,000
• Got reminders and easy tracking through her banking app
• Even earned cashback on EMI payments and utility bills

Small UPI perks, big debt clarity. Win-win, no?

Conclusion

UPI cashback might seem small — ₹10 here, ₹50 there — but over time, it can make a noticeable difference to your everyday spending. With banks and apps rolling out attractive rewards to keep you scanning and spending, why not make the most of it? 

Choose the right platform, stay updated on offers, and turn your routine payments into effortless savings. 

After all, in today’s world, every rupee saved is a rupee earned.

FAQs

• Do all UPI transactions qualify for cashback?

No, cashback usually applies to select merchants, amounts, or transaction types. Always check the offer terms.

• Can I use multiple UPI apps and still earn cashback?

Yes, if your bank supports them. Just ensure each app's cashback offer is valid for your bank.

• Is UPI cashback credited instantly?

Not always. It typically takes 1 to 7 working days. Some offer scratch cards or reward points instead.

• Does paying credit card bills via UPI give cashback?

Rarely. However, certain fintech apps may offer rewards through special partnerships.

• Can cashback help in debt management?

Yes — small savings from cashback can offset daily expenses and improve EMI planning.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?