RBI comes up with rules for digital payments in offline mode

New Delhi, Jan 4 (Agency) Reserve Bank of India (RBI) on Monday came up with framework for small value digital payments in offline mode to enable transfer of money without the need for internet or telecom connectivity using cards, wallets and mobiles. An offline payment means a transaction which does not require internet or telecom connectivity. “Offline payments may be made using any channel or instrument like cards, wallets, mobile devices, etc. Offline payments shall be made in proximity (face to face) mode only,” the RBI said.

With lack of internet connectivity in the remote areas, the offline payment facility is expected to boost adoption of digital adoption in even far-flung areas. As per the framework, the upper limit for an offline transaction would be Rs 200. “The total limit for offline transactions on a payment instrument shall be Rs 2,000 at any point in time. Replenishment of used limit shall be allowed only in online mode with AFA (Additional Factor of Authentication), the central bank said. It also stated that payment instruments shall be enabled for offline transactions based on explicit consent of the customer. Such transactions using cards shall be allowed without a requirement to switch on the contactless transaction channel. Offline payments shall be covered under the provisions of RBI’s limited customer liability circulars. “The customers shall have recourse to the Reserve Bank – Integrated Ombudsman Scheme, as applicable, for grievance redressal,” the banking regulator said.