Limit for contactless card transactions and e-mandates for recurring transactions through cards and UPI will be enhanced said Reserve Bank of India governor Shaktikanta Das on Friday. The limit for contactless card payments has been increased from Rs 2000 to Rs 5000 and will be effective from January 1, 2020.
The aim behind adopting the move by RBI is to expand digital payment in a safe and secure manner. Contactless card payments is well-suited to make payments, especially during the COVID-19 pandemic. This will, however, depend on mandate and discretion of customers said the RBI Governor Shaktikanta Das.
“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. 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 ₹2,000 to ₹5,000 from January 1, 2021. Operational instructions will be issued separately,” said the Reserve Bank of India in a statement on Developmental and Regulatory Policies.
The RBI also made another important announcement. Governor Shaktikanta Das said that the transfer of funds through Real-Time Gross Settlement (RTGS) will very soon be made available for customers round-the-clock.
Meant for high-value transactions, the RTGS facility was available for customers from 7.00 am to 6.00 pm on all working days of a week, except second and fourth Saturdays of every month.
In December 2019, the National Electronic Funds Transfer (NEFT) system was made available round-the-clock by the government.