Reserve Bank of India increases limit for contactless card transactions from January 1

To ensure the adoption of digital payments in a safe and secure manner, the Reserve Bank of India governor yesterday announced that the central bank has proposed to increase the limit for contactless card transactions to Rs 5,000 from Rs 2,000 per transaction from January 1, 2021. This announcement was part of the RBI’s bi-monetary policy announcement held on December 4, 2020.

According to the RBI’s Statement on Developmental and Regulatory Policies: Contactless card transactions and e-mandates on cards (and UPI) for recurring transactions have enhanced customer convenience in general while benefitting from increased use of technology. These are also well-suited to make payments in a safe and secure manner, especially during the current pandemic. The recent instructions on disablement of contactless feature on cards and empowering customers to control the limits on their cards have also brought in added safety for users. To further the adoption of digital payments in a safe and secure manner, it is proposed to enhance, at the discretion of the user, the limits for contactless card transactions and e-mandates for recurring transactions through cards (and UPI) from Rs 2,000 to Rs 5,000 from January 1, 2021. Operational instructions will be issued separately.

Source: The Economic Times