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Transaction Limit for Contactless Card Payments Increased by RBI
Go cash-free! RBI has increased the transaction limit for contactless card payment.
If you have been making card payments for a while, you know how easy and quick contactless card payments can be. Until now, the limit set for these transactions was Rs. 2,000. Reserve Bank of India (RBI) has now increased the transaction limit and set it to Rs. 5,000. This means that you can use the Tap-to-Pay option for transactions up to Rs. 5,000.
But you need to wait for a few more days since the new transaction limit will come in effect from 1st January 2021. Please note that you will have to swipe your card for transactions above Rs. 5,000 and enter your PIN.
Contactless cards are enabled with the Near Factor Communication (NFC) technology that the Point of Sales (POS) machines can read electronically, if the device is within a distance of 2 cm, to complete the payment. RBI has limited the transaction amount to Rs. 5,000 for reasons of security.
Not sure if you have a contactless card? Just check your card, if your card has a Wi-Fi symbol then it comes with the contactless payment facility.
