RBI Just Opened the Floodgates for Contactless & NFC Payments in India

The Reserve Bank earlier this week released the final circular on the relaxation in the requirement of additional factor of authentication (AFA) for small value "card present" transactions for values up to ₹ 2,000/- per transaction across all merchant categories using contactless/NFC (near field communication). According to one of the top 8 banks (Axis Bank), 60% of all credit and debit card transactions in the country are for less than INR 2000 (~$32). This percentage is atleast 50% in most cases (banks) based on our research. In fact, the INR 2000 (~$32) is a small amount and some banks have requested to raise the limit to 2.5 times of that.

Let's say hypothetically that a large part of these sub INR 2000 (~$32) transactions start going via the contactless/NFC route in the next 5 ...

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