RBI increases limit for contactless card transactions to Rs 5,000
The Reserve Bank of India (RBI) on Friday raised the transaction limit for contactless cards from rupees 2,000 to rupees 5,000.
RBI governor, Shaktikanta Das announced the monitory policy on Friday.
The new contactless card limit will be effective from January 1 next year.
The Monitory Policy Committee (MPC) of the RBI kept the benchmark repo rate unchanged at 4 percent and the reverse rate at 3.35 per cent.
Also read: Reserve Bank of India to introduce Positive Pay mechanism for all cheques above Rs 50,000
The transaction limit has been increased to allow more people to adopt the mode of digital payment in a safe and secured manner.
“In order to expand 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 rupees 2,000 to rupees 5,000 from January 1, 2021,” a report quoted Das as saying.
The RBI MPC is likely to adopt more rate cuts in the future to support the economy that has been badly affected by the Covid-19 pandemic.