Current Affairs

RBI approves offline E-Payments

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    8th Jan, 2022


The Reserve Bank of India (RBI) has come out with the framework for facilitating small-value digital payments in offline mode, a move that would promote digital payments in semi-urban and rural areas.

About Offline E-payments

  • The framework will enable the Authorised Payment System Operators (PSOs) and Payment System Participants (PSPs), Acquirers and Issuers (banks and non-banks) to conduct small value offline digital payments.
  • Offline digital payment does not require Internet or telecom connectivity.
  • Such payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets and mobile devices.
  • Such transactions would not require an Additional Factor of Authentication.
  • Since the transactions are offline, alerts (by way of SMS and/or e-mail) will be received by the customer after a time lag.
  • There is a limit of ?200 per transaction and an overall limit of ?2,000 until the balance in the account is replenished.

Conditions applied

  • Payment instruments shall be enabled for offline transactions only after the explicit consent of the customer.
  • That apart, these transactions using cards will be allowed without a requirement to turn on the contactless transaction channel.
  • The customers shall have recourse to the Reserve Bank – Integrated Ombudsman Scheme, as applicable, for grievance redressal.
  • RBI retains the right to stop or modify the operations of any such payment solution that enables small value digital payments in offline mode.