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Contactless Payment Limit of Credit Card has been Increased in India

Contactless Payment Limit of Credit Card has been Increased in India

Last Updated : Jan. 4, 2021, 3:38 p.m.

It is very convenient for every individual to make a contactless payment from their credit card without entering a PIN or an OTP. Previously the maximum amount of the contactless payment was ₹2000 only but as per the RBI’s guidelines in December the contactless payment limit of the Credit Card has been increased to ₹5000 in India. This rule was implemented and came into action from the 1 st of January 2021. Now, you can pay more from your credit card without providing any OTP or a PIN. Make sure that your credit card has a wifi symbol so that you can make contactless payments at various shopping and retail outlets.

Rules Related to Credit Card Contactless Payments

  • Previously, ₹2000 was the maximum limit for the contactless payment for all credit cards .
  • The credit card contactless payment limit was increased to ₹5000 from the 1 st of January 2021.
  • Contactless Payments are only available on credit cards powered by Visa, Mastercard, and American Express credit cards.
  • There is a wifi symbol present on every contactless payment credit card.
  • The minimum distance must be less than 4 cms between the machine and the card to make the contactless payment.
  • There is no need to enter any PIN or OTP for making a payment of up to ₹5000.
  • This technology works with the help of Radio Frequency and Near Field Communication.
  • You can decrease the maximum amount of contactless payment using net banking.
  • In contactless payments, there are microprocessors that do cryptographic processing to scramble and protect your credit card details.
  • The machines at the shopping outlets must also be enabled to accept contactless payments from credit cards.

Precaution while Using Contactless Payment Technology

  • When you make the payment on the machine through a contactless payment, you must always check the amount that is entered on the machine before you touch the credit card .
  • If you have to make a payment of ₹2500 through contactless payment then you must check on the machine that the same amount has been entered by the vendors.
  • Always take out your credit card from the wallet to make the payment and don’t touch your wallet directly on the machine.
  • If you are having multiple credit cards with a contactless payment feature then it is not advisable to touch your wallet to the machine for making the payment because it might catch any card and deduct the payment from it.


So, the reserve bank of India has increased the limit of the contactless payment to ₹5000 from ₹2000. This rule came into action from the 1 st of January 2021 and it helps people to save time and avoid carrying too much cash. On the other hand, it is safe not to touch and accept cash in such a pandemic. Therefore the contactless payment would be the best option for you to deal with a transaction of up to ₹5000. There is no need to enter any PIN or an OTP and you can make all types of payments by just touching your credit card to the machine.

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