To boost digital transaction, the Reserve Bank of India (RBI) on Friday increased the contactless card transactions limit to Rs5,000 from existing Rs2,000.
RBI said 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.
Further, RBI added that 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.
Thereby, 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, RBI said.
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