The Reserve Bank of India has introduced a new framework that is expected to further expand the reach of digital payments even in locations with low connectivity and network. The central bank has put up ‘Framework for Facilitating Small Value Digital Payments in Offline Mode’ on its official website. The new framework has come into force with immediate effect.
The framework includes feedback from pilot experiments on offline transactions carried out in different parts of the country during the period September 2020 to June 2021.
An offline digital payment means a transaction that does not require internet or telecom connectivity. Under this new framework, such payments can be made face-to-face (proximity mode) using any channel or means like cards, wallets, mobile devices etc.
Additional Factor of Authentication (AFA) will not be required for such transactions. Since the transactions are offline, the customer will receive alerts (through SMS and/or e-mail) after a time interval. As per RBI, the transaction is subject to a limit of Rs 200 per transaction and a total limit of Rs 2000 for all transactions till the balance in the account is replenished. The balance amount can be filled in online mode only.
Security around the new payment method
RBI has emphasized that offline mode of payment can be enabled only after obtaining specific consent of the customer. The customers also get protection under the provisions of the circulars limiting customer liability issued by the Reserve Bank (as amended from time to time). Customers also take recourse to the Reserve Bank – Integrated Ombudsman Scheme for grievance redressal.
Offline transactions are expected to boost digital transactions in areas with poor or weak internet or telecom connectivity, especially in semi-urban and rural areas.
Reserve Bank of India launches new digital payment method that doesn’t require internet: Check details first appeared on BGR India.