The Reserve Bank of India (RBI) is to raise the limit for contactless card transactions from Rs2,000 (US$27) to Rs5,000 ($67.67) from 1 January 2021, an increase of 150%.
“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,” RBI says in a statement on development and regulatory policy announcing the increase.
“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 Rs2,000 to Rs5,000 from January 1 2021. Operational instructions will be issued separately.”
Card issuers in India have been required to enable cardholders to switch a card’s contactless functionality on and off and set and modify its transaction limit since March 2020.
• Find full and up-to-date details of worldwide contactless limit increases in NFCW’s table of contactless transaction limit changes.