Can electrolytic capacitors can have higher peak current than their max RMS or ripple current ratings as long as RMS current is below the specified current value?
Such as a capacitor with a rating of 1.5amp RMS max which conducts 4amps peak but 1.2A RMS.
But electrolytics don't work with AC the peak currents might be from switching an inductive load with constant peak current greater than specified RMS current from datasheet.
We talk about "current", thus your statement is wrong.
For sure every capacitor can work with AC current.
For voltage:
Electrolytics can't work with "negative voltage".
In usual power supply applications, there is DC voltage combined with AC voltage (ripple) in a way that there is no negative voltage.
I would assume 4A peak for a 1.2rms rated cap is fine. 5x or 10x might have me thinking more carefully about it.
But also consider the whole picture. If you also have a handful of ceramic (or films) with lower esr/esl they'll start taking the higher frequency pulses away from your electrolytics. It's good practice to have them anyway.
You must also consider the rated voltage of the capacitor. An electrolytic capacitor always have some series resistance (ideal capacitor has zero equivalent series resistance) and that can limit the initial current.
Consider you are using a low duty cycle square wave (positive going narrow pulse train) that will have high peak current but low RMS current. Such a case you will have the peak current limited by the capacitor series resistance. The ESR contributes to the internal heating that also must be limited.
Can electrolytic capacitors can have higher peak current than their max RMS or ripple current ratings as long as RMS current is below the specified current value?
Such as a capacitor with a rating of 1.5amp RMS max which conducts 4amps peak but 1.2A RMS.
I believe the current specification of caps is limited by their ESR, where excess heating might destroy it. Heating is directly related to Irms, and not Ipeak. Hence working below the Irms with high Ipeak should be ok.
Voltage on the other hand is related to electrolyte breakdown, so peak values must be well below voltage ratings.