The Reserve Bank of India has released a new framework, allowing offline payments up to Rs 200 per transaction. This has been carried out to promote digital transactions in rural and semi-urban areas.
An offline digital payment means a transaction that does not need internet, i.e, payments can be made face-to-face with instruments like cards, wallets, phones etc
The RBI has recommended allowing a pilot scheme for small value offline payments with built-in safeguards such as user security, liability protection, and so on. Authorized Payment System Operators (PSOs) — banks and non-banks – will be able to provide offline payment solutions for remote or proximity payments using cards, wallets, or mobile devices under the trial scheme.
When using cards in offline mode, the card data and transaction information are retained at the terminal, which also generates a transaction response with data that can be used to generate a receipt. When the internet connection is restored, the stored payment data is sent to the payments platform for processing, according to a Financial Express report.
Against this context, offering offline payment options via cards, wallets, and mobile devices is likely to boost digital payment uptake. The Reserve Bank of India is promoting the development of offline payment alternatives.
The following terms and conditions apply to the payment solutions given to users:
a) Payments could be made using cards, wallets or mobile devices or through any other channel.
b) Payments may be made in remote or proximity mode.
c) Payment transactions can be offered without any Additional Factor of Authentication (AFA).
d) The upper limit of a payment transaction shall be Rs.200.
e) The total limit for offline transactions on an instrument shall be Rs. 2,000, at any point in time. Resetting of the limit shall be allowed in online mode with AFA.
f) The PSO shall send real-time transaction alerts to users as soon as transaction details are received.
g) Contactless payments shall adhere to EMV standards.
h) Payment transactions in offline mode without AFA shall be at the choice of the user.
i) The acquirer shall incur all liabilities arising out of technical or security issues at the merchant’s end.
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