MUMBAI (TIP): The RBI has cleared the decks for ‘tap & pay’ transactions using NFC technology, even as SBI announced the largest contactless card rollout. The RBI’s decision to allow such transactions for up to Rs 2,000, without any PIN requirement, will pave the way for electronic payments in public transport, highway tolls and food outlets. SBI plans to upgrade over 1 lakh retail outlets for contactless acceptance.
Making the first contactless payment at a Starbucks outlet in Mumbai, SBI chairman Arundhati Bhattacharya said that several retail chains have agreed to install the acceptance device for contactless cards. The bank has over 2.2 lakh CREDIT CARD swipe machines which would be gradually upgraded to accept contactless payments as well.
RBI’s decision to waive PIN authentication will hasten acceptance of ‘tap and pay’ electronic payments at retail outlets as a transaction will be completed in a couple of seconds.