In current months there has been a marked raise in contactless transactions.
If you have turn out to be comfy with the contactless card transactions, right here is a piece of superior news for you. In order to expand the adoption of digital payments in a secure and safe manner, the RBI has proposed to boost the limit for contactless card transactions from Rs 2,000 to Rs 5,000 from January 1, 2021. In addition, the transaction limit on e-mandates for recurring transactions via cards and UPI from Rs 2,000 to Rs 5,000 from January 1, 2021. These raise in limits will, on the other hand, be at the discretion of the user.
“The RBI’s decision to increase the limit from Rs. 2000 to Rs. 5000 without entering a PIN on contactless transactions through NFC cards is a welcome move. We have in recent months seen a marked increase in a contactless transaction on our network,” says Deepak Chandnani, Managing Director, Worldline South Asia and Middle East.
On NFC enabled cards, there is no requirement to enter PIN whilst creating transactions at merchant establishments. “This is because of the fact that the entire transaction is contactless with no one but the cardholder touching the card and also very importantly the ease of use. NFC transactions follow safety protocols as specified by RBI and Payment Schemes and cardholders can be assured that their transactions are being conducted in a secure manner,” adds Deepak Chandnani.
A cardholder desirous of opting for e-mandate facility on card shall undertake a 1-time registration course of action, with extra issue authentication (AFA) validation by the issuer. An e-mandate on card for recurring transactions shall be registered only soon after productive AFA validation, in addition to the typical course of action essential by the issuer. This facility will now also be accessible for UPI customers.
Currently, the limit for e-mandate primarily based recurring transactions devoid of AFA is Rs 2,000 per transaction and is proposed to be enhanced to Rs 5,000. Transactions above this cap are also topic to AFA. As a user, 1 can set a spending limit on the card and even switch-off the card usage for greater safety.