Now Digital Payment Will Be Made Offline RBI Introduces New Policy

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Now Digital Payment Will Be Made Offline RBI Introduces New Policy
23 Feb 2023
7 min read

News Synopsis

Latest Updated on 23 February 2023
A framework to enable small-value Digital Payments using Cards, Wallets, and Mobile Devices in Offline Mode was issued by the Reserve Bank of India on Monday. Operators of Payment Systems will only be permitted to accept offline payments in the face-to-face mode under the new regulations. These payments, which won't need the Internet or a Cellular Network, would be limited to Rs 200 per transaction and will not need two-factor authentication.

The RBI stated in a statement that "offline payments may be done using any channel or instrument like cards, wallets, mobile devices, etc." "Only close-proximity method should be utilized for offline payments."

Several banks ran a Pilot Test for starting offline payments from September 2020 to July 2021. The RBI said in October of last year that a framework for making small-value Digital Payments Nationally in Offline Mode will be adopted.

According to the Guidelines, the top limit of an Offline Payment Transaction would be Rs 200. A payment instrument's total limit for offline transactions will always be Rs 2,000. The regulator said that only with the customer's express permission would payment instruments be made available for Offline Transactions.

The RBI further stated that the acquirer will be responsible for any liabilities resulting from Vendor Technical or transaction security concerns.

Last Updated on 14 October 2021

Digital payment is becoming the norm now. Everyone seems to have linked their bank accounts with their Smartphones. Even in remote parts of our country, people are using Digital Payment Apps. But a major hindrance in the government's scheme to make the whole of India cashless is facing challenges in the form of internet issues. Since many parts of the country have slow or no internet, digital payment hasn't reached them. RBI took notice of this problem and has finally decided to roll out a technology that will help people pay digitally even without a stable internet connection. 

Yesterday, RBI officially made an announcement that it indeed is working on a technology that will allow people to pay digitally without even having a stable internet connection or even no internet connection. This technology is still under development but soon will be tested out publicly. RBI has ensured that it has taken all the measures to make it safe but still the technology is still underdeveloped. There's still some time before RBI can launch it. If that happens, it will be a huge feat for RBI as digital payment would even reach places that don't have a good internet connection.