RBI hikes contactless card transaction limit to Rs 5000 to boost e-payments

Experts said it is a step in the right direction by the RBI and people have been asking it to enhance the limit.

In a move that could boost the adoption of digital payments, the Reserve Bank of India (RBI) on Friday increased the limit for contactless card transactions from Rs 2,000 to Rs 5,000, effective from January 1 next year. The same has been done for e-mandates for recurring transactions through cards and the Unified Payment Interface (UPI).
 
According to the RBI, “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