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.
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
AdvertisementWhat 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
- IMF projects 11.5% growth rate for India in 2021, only major economy to record double digit growth
- Connaught Place to remain shut as farmers' tractor parade turns violent
- After violent clashes with police, farmers swarm Red Fort
- DMRC closed entry and exit gates of yellow, green, violet and blue lines in surge of farmers protest
- Delhi Police fires tear-gas shells on farmers near Akshardham temple and Sanjay Gandhi Transport Nagar