RBI releases Framework for facilitating Small Value Digital Payments in offline mode; effective immediately

The Reserve Bank of India has now introduced the ‘Framework for facilitating small value digital payments in offline mode’ for the Authorised Payment System Operators (PSOs) and Payment System Participants (PSPs) – Acquirers and Issuers (banks and non-banks) who are desirous to provide / enable payment solutions that facilitate small value digital payments in offline mode. The new framework is applicable with immediate effect.

An offline digital payment means a transaction which does not require internet or telecom connectivity. Under this new framework, such payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets, mobile devices, etc. Such transactions would not require an Additional Factor of Authentication (AFA). Since the transactions are offline, alerts (by way of SMS and / or e-mail) will be received by the customer after a time lag. Transactions are subject to a limit of ₹200 per transaction and an overall limit of ₹2000 for all transactions until balance in the account is replenished. Balance replenishment can only occur in an on-line mode.

Also, the offline mode of payment can be enabled only after obtaining specific consent of the customer. Customers shall enjoy protection under the provisions of circulars limiting customer liability issued by Reserve Bank (as amended from time to time). Customers also have recourse to the Reserve Bank – Integrated Ombudsman Scheme for grievance redress.

For a detailed read of the Framework, please refer to the attached document.

Source: Reserve Bank of India