RBI to hike contactless card transaction limit to Rs 5,000 from January 2021

Mumbai, 4/12: Limit for contactless card transactions and e-mandates for recurring transactions through cards and UPI will be increased said RBI Governor Shaktikanta Das on Friday. The limit for contactless card payments will be increased from Rs 2000 to Rs 5000 and will be effective from January 1, 2021.

The purpose behind such a move is to encourage Digital Payment in a safe and secure manner. The contactless card payment is well-suited to make payments during the Covid-19 pandemic. This will, however, depend on the mandate and discretion of customers said the RBI Governor Shaktikanta Das.

“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 features 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 ₹2,000 to ₹5,000 from January 1, 2021. Operational instructions will be issued separately,” said the Reserve Bank of India in a statement on Developmental and Regulatory Policies.

RBI Governor Shaktikanta Das has also stated that the transfer of funds through Real-Time Gross Settlement (RTGS) will very soon be made available for customers round-the-clock.