To push digital transactions in rural and semi-urban areas, the Reserve Bank of India (RBI) on Monday issued a framework allowing o♑ffline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000.
An offline digital 🅺payment means a transaction that does not𒅌 require internet or telecom connectivity.
Under the offline mode, payments can be carried out face-to-face (proximity mode) using any channel or instr⛎ument like cards, wallets, and mobile devices.
These tran💮sactions will not require an additional factor of authentication (AFA), the Reserve Bank of India said, adding that since the transactions are offline, al🦩erts (by way of SMS and/or e-mail) will be received by the customer after a time lag.
"Transactions are subject to a limit of Rs 200 per transaction and an overall limit of Rs 2,000 for al🍨l transactions until the balance in the account is replenished. Balance replenishment can only occur in an online mode," said the Framework for Facilitating Small Value Digital Payments in Offli🏅ne Mode.
The 🐷framework incorporates the feedback received from the pilot experiments🥃 on offline transactions conducted in different parts of the country during the period from September 2020 to June 2021, it said.
"Offline transactions are expected to give a push to digital transactions in areas with poor or weak inter🐈net or telecom connectivity, particularly in semi-urban and rural areas. The new framework i🌌s applicable with immediate effect," the RBI said.
The offline𒉰 mode of payment, it said, can be enabled after obtaining the specific consent of the customer.
The customers, it added, will continue to enjoy protection under the provisions of circulars limiting customer liability and will have recourse to the Reserve Bank – Integrated Ombudsman S🙈cheme for grievance redress.
Offline payments can be made using any chanꦜnel or instrument like cards, wa🥀llets, and mobile devices.
"Offline payments shall be made in proximity (face-to-face) mode only," it said and༺ added that such transactions may be offered without AFA.
Also, such transactions using cards should be allowed without a requiremen꧋t to switch on the contactless transaction channel.
Further, the acquirer should incur all liabilities arising out of technical or transaction security issu♓es at the merchant's end. The RBI also emphasised that offline payments will be covered under th꧃e provisions of its limited customer liability circulars.
The RBI has asked all the authorised payment system operators (PSOs) and payment system participants (PSPs) – acquirers and 🥀issuers (banks and non-banks) – to ensure compliance with the instructions𝐆.
