Comments
In a move that will boost the use of contactless payments, the Reserve Bank of India has proposed to increase the limit for contactless card payments to ₹5,000 from ₹2,000.
“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 ₹2,000 to ₹5,000 from January 1, 2021,” said the Statement on Developmental and Regulatory Policies of the RBI on Friday.
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, it further noted, adding that these are also well-suited to make payments in a safe and secure manner, especially during the current pandemic.
The RBI also proposed to allow settlement files of payment systems (AePS, IMPS, NETC, NFS, RuPay, UPI) to be posted to the Reserve Bank on all days of the year, given the round-the-clock availability of eKuber (core banking system of the RBI) and RTGS (to be operationalised soon).
“The RTGS system will soon be made 24x7. With this enablement, it is proposed to reduce settlement and default risk in the system by facilitating settlement of AePS, IMPS, NETC, NFS, RuPay and UPI transactions on all days of the week,” said RBI Governor Shaktikanta Das, adding that this will make the payments ecosystem more efficient.
To enhance convenience
Players welcomed the move to hike the limit for contactless card payments, and said it would enhance convenience to customers.
“Consumers have continued to prefer contactless cards for their small ticket, daily use purchases. 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,” said TR Ramachandran, Group Country Manager, India and South Asia, Visa.
Deepak Chandnani, Managing Director, Worldline South Asia and Middle East, said the company, in recent months, has seen a marked increase in contactless transaction on its network. “The entire transactions are NFC transactions, follow safety protocols as specified by the RBI and Payment Schemes, and cardholders can be assured that their transactions are being conducted in a secure manner,” he further said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.