The Reserve Bank of India (RBI) has raised the contactless card transactions limit to Rs 5,000 from Rs 2,000, Governor Shaktikanta Das said while announcing the Monetary Policy on December 4. The new limit will be effective from January 1.
The MPC kept the repo rate unchanged at 4 percent.
The increase in transaction limit will help expand the adoption of digital payments in a safe and secure manner, Das said.
“In order to expand the adoption of digital payments in a safe and secure manner, it is proposed to enhance, at the discretion of the user, the limits for contactless card transactions and e-mandates for recurring transactions through cards (and UPI) from Rs 2,000 to Rs 5,000 from January 1, 2021,” Das said.
The RBI MPC maintained an accommodative stance, implying more rate cuts in the future if the need arises, to support the economy hit by the COVID-19 pandemic. The benchmark repurchase (repo) rate was also left unchanged at 3.35 percent, Das announced.Also Read: Key highlights of RBI Monetary Policy