The Reserve Bank of India (RBI) has come up with the increased transaction limit on the single transaction limit on contactless payments without the PIN, for amounts ranging between Rs 2,000 to Rs 5,000. This new limit will come into action from January 1, 2021. The scheme is likely to benefit largely everyone who is a cardholder unable to make the payments of above Rs 2,000 by using credit or debit cards through Near Field Communication which does not require a PIN.
In these few months, we have been witnessing remarkable growth in the form of contactless digital payments by the bank. This is because people want to choose to pay through a method more safe and convenient to meet their day-to-day problems or needs. The Mastercard also takes a moment to acknowledge the RBI’s decision to increase the limit from Rs 2,000 to Rs 5,000 without even putting a PIN on transactions that are contactless by using the NFC cards.
The magnify limit of Rs 5,000 in one single transaction will also be effective on electronic grants for recurring payments. This will provide help to the people to set up a regular payment mandate for SIP, EMIs, Mutual Fund, or recurring subscription fees for diverse products and services. While there is a large number of people looking for such an option and there are others who may look at this as a danger caused due to the chances of being misused as the transaction in contactless form wouldn’t require any PIN to carry on with the transaction.
All the people were looking for a structure through which they can choose to use or not to in this specific feature by simply keeping in mind the need of such people, the RBI made it critical for the card providers to propose the people who are cardholders with a capability through which they can easily enable or disable this facility as per their choice.