RBI approves small offline e-payment

Tags: Economics/Business

The Reserve Bank of India (RBI) on 3rd January 2022, issued a framework allowing offline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000.

• The offline digital payment means a transaction that does not require internet or telecommunication Connectivity and payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets, and mobile devices. 

Delayed Alerts

• These transactions will not require an additional factor of authentication (AFA).
• Since the transactions are offline, alerts (SMS and / or e-mail) will be received by the customer after a time lag.

Push to digital transactions:

• These offline transactions are expected to give a push to digital transactions in areas with poor or weak internet or telecom connectivity, particularly in semi-urban and rural areas.
• 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.

Important Point:

The overall limit for all transactions is of Rs 2,000 until the balance in the account is replenished. Balance replenishment can only occur in an online mode.

Reserve Bank of India

Headquarters: Mumbai

Founded: 1st April 1935

Governor: Shaktikanta Das