RBI conveys mail to card companies eliminating the current limit of Rs 2,000 for this functionality.
The Reserve Bank of India has granted the green signal to the country’s payment networks – Visa, Mastercard, and NPCI. The facility is to provide tap-and-go functionality on card payments for all purchases. Also, a move pointed at performing such transactions more secure and contact-free during and after the COVID-19 pandemic.
After due rises by banks and payment service providers, consumers can evade swiping their credit and debit cards at stores. Additionally, which are equipped with contactless point-of-sale devices, even for purchases surpassing the current limit of 2,000.
Tap-and-go card payments for purchases beyond 2,000 will require two-factor authentication, ₹and consumers must enter a PIN to process the transaction.
“Card-present (CP) transactions with EMV chip and PIN cards may process in contactless method, irrespective of the transaction value,” the RBI stated in an email to the country’s three-card networks. “Though, the transactions with costs over 2,000 shall be verified by PIN.”
Tap-and-go transactions approved by radio frequency identification technology and don’t lack physical contact with a payment terminal. Further, Consumers can still transact through conventional means by swiping their cards, the central bank reemphasized in the letter.
NPCI has been encouraging consumers to make more contactless payments. For Mastercard, such transactions -raised by 40% in the first quarter of the year, CEO Ajay Banga stated at a press briefing on Wednesday. Also, Visa has been conducting projects to bring the technology to smartphone devices in India and abroad.
Additionally, firms like Samsung, Apple, Pine Labs, and Worldline have been trying to conduct PoS devices and virtual debit card functionalities to smartphones.