- Advertisement -

Framework for small value digital payments in offline mode introduced

- Advertisement -

Mumbai, Jan 3 (IANS) The Reserve Bank of India on Monday released the framework for facilitating small value digital payments in offline mode, which does not require internet or telecom connectivity.

Under the framework, transactions with a limit of Rs 200 per transaction and an overall limit of Rs 2,000 for all transactions has been allowed.

- Advertisement -

In a statement on Monday, the RBI said that balance replenishment can, however, only occur in an online mode.

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, amongst others. Besides, such transactions would not require an ‘Additional Factor of Authentication’ (AFA).

- Advertisement -

Furthermore, since the transactions are offline, alerts will be received by the customer after a time lag.

The Reserve Bank had, in August 2020, permitted a pilot scheme to encourage technological innovations that enable small value digital transactions in offline mode. Subsequently, pilot testing was undertaken by some entities during the period from September 2020 to July 2021.

- Advertisement -

“With encouraging feedback from the pilots, it was announced in the Statement on Developmental and Regulatory policies dated October 8, 2021, that a framework for carrying out small value digital payments in offline mode across the country would be introduced,” it said.

Additionally, the RBI said the acquirer shall incur all liabilities arising out of technical or transaction security issues at merchant’s end.

“Offline payments shall be covered under the provisions of RBI’s limited customer liability circulars… The customers shall have recourse to the Reserve Bank – Integrated Ombudsman Scheme, as applicable, for grievance redressal.”

–IANS

rv/vd

- Advertisement -
RELATED ARTICLES
- Advertisment -

Related Posts

- Advertisement -