RBI hikes limit for contactless card payments from ₹2,000 to ₹5,000
- The Reserve Bank of India has hiked the limit for
contactless paymentsfrom ₹2,000 to ₹5,000.
- The new limit will be effective from January 1, 2021.
- Users will be able to customize their limit up to ₹5,000, and if they want to, they can also disable it altogether.
- Check out the latest news and updates on Business Insider.
AdvertisementThe Reserve Bank of India has hiked the limit for contactless payments from ₹2,000 to ₹5,000, making it easier to quickly make purchases by tapping debit and credit cards at merchant outlets.
The new limit was revealed by RBI Governor Shaktikanta Das during the announcement of decisions made by the Monetary Policy Committee.
The new limit of ₹5,000 will be effective from January 1, 2021. However, as is the case right now, the new limit will be at the discretion of the user. Users can customize their limits up to ₹5,000, or altogether
What are contactless payments?
As the name signifies, contactless payments enable you to make payments at payment terminals without swiping your debit or credit card. You don’t have to enter your PIN either.
To make contactless payments, all you have to do is wave the card near the contactless point on the payment terminal. The authentication is done via Near Field Communication (NFC) technology and once authorised, the payment is made.
The limit enhancement of contactless payments comes at a time when Visa and MasterCard – the two largest payment processing networks in the world – have been promoting contactless payments as one of the ways to avoid contact during the coronavirus pandemic.
The RBI has also announced that the Real Time Gross Settlement (RTGS) system will go live 24x7 in the next few days.
RTGS is usually meant for making high-value payments. The minimum limit is ₹2 lakh and there is no maximum cap.
RBI sees 7.5% GDP contraction for FY21 but expects inflation to remain elevated till March
Sensex hits 45,000 and Nifty scales fresh high as RBI revises growth outlook — these are the top movers in trade
Airtel records 3.8 million new subscribers in September – more than twice that of Reliance Jio’s additions
Popular on BI
- Not hard, not soft, the earliest dino eggs may have been of a 'leathery' texture to protect against damage: study
- Don't need to go big to go home: Australia is turning to sustainable 'tiny houses' to fix their housing crisis!
- Affordability levels to buy homes hit in last 2 years; to improve in 2024 on likely repo rate cut: JLL
- Carbon tax turns into climate fight at COP28
- Market to focus on macro data, global trends: Analysts