Offline digital payments: All you need to know.
Now you can transfer money without the internet!
As people are using more digital payment modes to transfer money that requires the internet. The central bank of India (RBI) announced a framework on Monday that enables offline payments of up to Rs 200 per transaction, subject to a total limit of Rs 2,000. This decision was taken by the Reserve Bank of India (RBI) to encourage digital transactions in rural and semi-urban regions.
How will this new payment system work?
Payments can be in proximity mode via any channel or instrument, such as wallets, cards, and mobile devices, in the offline mode. In its statement Reserve Bank of India (RBI) stated that these transactions will not require an additional factor of authentication (AOA) and that because the transactions occur offline, the consumer will receive warnings (through SMS and or e-mail) after a time lag.
The maximum limit of these offline payment transactions shall be Rs 200. The total limit for offline transactions on a payment instrument shall be Rs 2,000 at any point in time. The framework integrates feedback pilot experimentation offline transactions by some entities during the period from September 2020 to July 2021. These offline payment transactions can be enabled after obtaining the specific consent of the customer.
All the transactions made by the customer will secure protection under the provisions of circulars limiting customer liability and will have recourse to the Reserve Bank’s Integrated Ombudsman Scheme for grievance redress.
This mode of transactions will benefit the people in rural and lower internet access areas by making the transfer process easy and also encouraging a way forward to ‘Digital India.’
Source: RBI, Wion news.
