RBI allows offline digital payments

In News

• To push digital transactions in rural and semi-urban areas, the Reserve Bank of India (RBI) issued a framework allowing offline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000.

About offline digital payments

• Meaning: An offline digital payment means a transaction that does not require internet or telecom connectivity.
• Modes: Under the offline mode, 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 will be received by the customer after a time lag.
• Limit for offline payment transactions: Transactions are subject to a limit of Rs 200 per transaction and an overall limit of Rs 2,000 for all transactions until the balance in the account is replenished.
  • Balance replenishment can only occur in an online mode.

Significance of this move

• Push to digital transactions: 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.
• Consent of the customer: It can be enabled only after obtaining the specific consent of the customer.
• Grievance Redressal: The customers will continue to enjoy protection under the provisions of circulars limiting customer liability and will have recourse to the Reserve Bank Integrated Ombudsman Scheme for grievance redress.

Source: IE