Paytm AU RuPay Card: Free, With Family Lounge Visits. The Catch

Updated as of 21 Oct 2026. Card details from Paytm’s AU Small Finance Bank card page, checked 21 Oct 2026.

Paytm and AU Small Finance Bank launched a co-branded RuPay credit card on 21 Oct. It’s lifetime free, works on UPI, and comes with something no free card usually has: lounge visits for your family. Sounds too good? There’s a catch, and it’s in how you earn those lounge visits.

The card in one table

Fees	Lifetime free: no joining or annual fee
Network	RuPay, so it works on UPI
Paytm Travel bookings	5% back
Paytm Gold purchases	5% back
Paytm UPI spends	Up to 2% back
Recharges, bill payments and more	1% back
Point value	1 point = ₹1, redeemed as 24K digital gold in the Paytm app
Lounges	Up to 4 visits per booking, 12 a year, for you and family travelling with you, only with a round-trip flight of ₹5,000+ booked on Paytm Travel
Fuel	1% surcharge waiver
Forex	Up to 3.5% + GST
Eligibility	₹25,000 monthly income

The catch: lounges come only with Paytm flights

Most cards give lounge access on spend, or just for holding the card. This one gives it per round-trip flight booked through Paytm Travel worth ₹5,000 or more. A family of four booking Chennai–Delhi return on Paytm gets four lounge visits for that trip. Book on the airline’s site, IndiGo’s app or your bank portal, and you get nothing.

So it isn’t a lounge card. It’s a travel-booking card with lounges as a sweetener. If Paytm’s fare for your trip matches the airline’s, it’s a genuine bonus for a family. If it’s ₹500 more per ticket, the “free” lounge visits just cost you money.

How good are the rewards?

• 5% on Paytm Travel is the standout. On a ₹20,000 family flight booking that’s ₹1,000 back, plus the lounges.
• Up to 2% on UPI is good for a free card, but only on Paytm UPI. Pay through GPay or PhonePe and you’ll get less or nothing.
• Points become digital gold, not cash. ₹1 a point, but you can’t take them as a statement credit. Digital gold carries 3% GST and a buy–sell spread, so the cash value of what you get back is a little lower than it looks.

You are…	What to do
A Paytm UPI user with no RuPay credit card yet	✅ Get it. Free, and decent on UPI
A family that books domestic flights on Paytm	✅ Worth it for 5% back plus family lounge visits, if fares match the airline
Looking for a lounge card	❌ Not this. You must book on Paytm every time
Spending abroad	❌ 3.5% forex. Use a low-forex card
A points and miles collector	⚠️ No airline transfers. Keep it only as a UPI card

Want to see how a free card like this fits next to your main points card? Try our Trip Spend Planner.

DealUni take: a decent free UPI card for Paytm users, with a nice family perk if you already book flights on Paytm. Don’t get it for the lounges. Card free hai, par lounge Paytm se booking pe hi milega. (The card is free, but the lounge comes only with a Paytm booking.)

Source: Paytm AU Small Finance Bank credit card. Checked 21 Oct 2026.