Limit For Contactless Payment, Without PIN Raised To Rs 5000 For UPI, Card Payments
The Reserve Bank of India has announced that the limit to withdraw money through contactless card transactions has now increased.
The limit was previously Rs. 2000 and now, it has been increased to Rs. 5000.
Will this move help attract people to opt for digital payments? Read on to find out all the details!
RBI Announces Extension Of Contactless Card Transactions
The apex bank has announced that this rule will be effective from January 1, 2021. The limit that was previously Rs. 2000 will now be extended to Rs. 5000.
This move is expected to boost the adoption of digital cardless transactions. As per reports, the same has already been done for e-mandates for recurring transactions through cards and the Unified Payment Interface (UPI).
RBI has stated that contactless card transactions and e-mandates on cards and UPI for the recurring transactions have improved the entire experience for customers and improved their convenience. Additionally, there also are the benefits of increased use of technology.
T R Ramachandran, group country manager, India & South Asia, Visa, said, “As evident in recent months, there is strong consumer preference for digital payments and the new enhanced limits for e-mandates and contactless cards will help transition millions of Indian consumers from cash to fast, convenient, and secure forms of digital payments.”
The RBI has also stated that these are suitable for making payments in a safe and secure way, especially while the pandemic is upon us and demands social distancing to limit spreading further.
Will This Improve Average Value Of Transactions?
We all know that contactless card payments are done without the need to enter the PIN. This also makes it safer to conduct transactions in the current situation.
As per experts, RBI has taken this step in the right direction as people have also been requesting to increase the limit.
Dilip Asbe, MD & CEO of the National Payments Corporation of India (NPCI) has also said that this increased limit of contactless card transactions will help attract more people towards digital transactions. He said that it will help boost the average value of transactions.