NPCI welcomes RBI’s move to raise limits for contactless card transactions
By Edil Corneille
The National Payments Corporation of India (NPCI) issued a press statement by Dilip Asbe, MD & CEO, NPCI on the Reserve Bank of India’s (RBI) announcement to increase limits for contactless card transactions and e-mandates for recurring transactions through cards (and UPI).
The NPCI MD & CEO, in a press statement, enunciated, “This is a welcome step by RBI to increase transactions and e-mandate limit. The increased limit will also help to boost the average value of transaction and push the adoption of digital payments. This step re-affirms the commitment of the country to become a less-cash economy…”
In May 2015, the RBI announced a relaxation for the Additional Factor of Authentication (AFA) requirement permitted for transactions for a maximum value of INR 2,000/- per transaction. Presently, as the COVID-19 pandemic has underlined the benefits of contactless transactions, it has been decided to increase the per transaction limit to INR 5,000/-. All other requirements, including the discretion of cardholder to use contactless or contact mode of transaction, shall continue to remain applicable, as hitherto.
The statement by the NPCI MD & CEO further mentioned that the announcement will help RuPay cardholders to make secured contactless transactions of up to INR 5,000 on the go thereby facilitating them with hassle free transaction experience. Similarly, this will be a major boost to the users of recently launched UPI AutoPay functionality for the customers to execute their high ticket recurring payments like utility bills, investments, two-wheeler EMIs, consumer durable EMIs, etc., seamlessly. The move will also help customers to on-board into BHIM UPI for performing easy and convenient P2P and P2M transactions.
“…NPCI continues to play a pivotal role in driving the digital India mission through constant innovation, spreading awareness and deploying robust technology and infrastructure for seamless, secure and convenient payment experience,” Asbe added.
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