What is the per transaction limit for using contactless debit card

With the evolution of technology, we no longer need to swipe our credit or debit cards into the point-of-sale (POS) machine when shopping; instead, we can just tap and pay the amount without entering our PIN. Many banks now offer their customers contactless credit cards.

Here is a look at what are contactless debit cards, how it works and the daily transaction limit set by the Reserve Bank of India (RBI).

What is a Contactless Debit Card, how it works

According to the IDBI Bank website, ". Contactless card is a state-of-the-art debit card which facilitates you with faster way to pay for purchases below the set amount at participating merchants in India. Instead of dipping (or swiping) your card at the billing counter, simply wave/ tap your card on the contactless Point of Sale (POS) terminal and pay without entering a PIN."


Also read: RuPay credit cards on UPI in HDFC Bank, ICICI Bank, SBI and others: Annual fees, interest rate, key features

Features of Contactless Debit Card

• No PIN is required up to Rs 5,000/- per contactless transaction
• PIN is mandatory for all transactions above the value of Rs 5,000/- per transaction
• Maximum transaction limit is up to Rs 5,000/- for the contactless mode.

According to the RBI circular dated December 04, 2020, "The present COVID-19 pandemic has underlined the benefits of contactless transactions. Keeping this in view and based on stakeholder feedback, it was announced in the Statement on Developmental and Regulatory Policies dated December 4, 2020 that per transaction limit for AFA relaxation for contactless card transactions will be increased. Accordingly, given the sufficient protection available to users, it has been decided to increase the per transaction limit to Rs 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."

It should be noted that for current cards, issuers may choose whether to activate contactless transaction rights based on their risk assessment.

How to activate contactless debit card

How to activate SBI contactless debit card through YONO SBI mobile app

Step 1: Login with User Id and password or PIN
Step 2: Select Menu - Services - Manage NFC
Step 3: Select Debit Card - Select Card Number
Step 4: Select NFC Enable / Disable ON - OFF
Step 5: Select and Submit NFC

Contactless debit card limit

Axis Bank

A Contactless Card is a faster way to pay with your Credit or Debit Card for purchases up to Rs.5000/- at participating stores.

HDFC Bank

Payment through the contactless mode is allowed for a limit of maximum Rs. 5000/- for a single transaction in India. For any transaction amount more than Rs. 5000/- you will be asked to provide your Debit Card PIN.

Canara Bank

Contactless transaction allowed upto Rs 5000/- per occasion and 5 transactions per day.

ICICI Bank

Your ICICI card carries a contactless (WiFi) symbol enabling you to pay up to Rs 5,000 without entering a PIN.