RBI allows offline digital payments to enter rural India

RBI allows offline transactions to promote digital payments in rural areas

Mumbai: Aiming to promote digital transactions in rural and semi-urban areas, the Reserve Bank of India (RBI) on Monday issued a framework allowing offline payments up to Rs 200 per transaction, subject to an aggregate limit of Rs 2,000. is subjected to.

An offline digital payment means a transaction that does not require internet or telecom connectivity.

Under offline mode, payments can be made face-to-face (proximity mode) using any channel or means such as cards, wallets and mobile devices.

These transactions will not require an Additional Factor of Authentication (AFA), the Reserve Bank of India said, adding that since the transactions are offline, the customer will receive alerts (through SMS and e-mail) after a time lag. ,

“Transactions are subject to a limit of Rs 200 per transaction and an aggregate limit of Rs 2,000 for all transactions till the balance in the account is replenished. Replenishment of balance can be done only in an online mode,” says Small Value Digital The framework said to facilitate payments in offline mode.

The framework includes feedback received from pilot experiments on offline transactions carried out in different parts of the country during the period September 2020 to June 2021.

The central bank said the offline mode of payment can be enabled after obtaining specific consent of the customer.

It added that customers will continue to enjoy protection under the provisions of the circulars limiting customer liability and will take recourse to the Reserve Bank – Integrated Ombudsman Scheme for grievance redressal.

Offline payments can be made using any channel or means like cards, wallets and mobile devices.

“Offline payment will be done only in proximity (face-to-face) mode,” it said and added that such transactions can be offered without AFA.

Also, such transactions using the card should be permitted without the need to switch to a contactless transaction channel.

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