INSUBCONTINENT EXCLUSIVE:
RBI has allowed offline transactions to promote digital payments in rural areasMumbai: Aiming to promote digital transactions in rural and
semi-urban areas, the Reserve Bank of India (RBI) on Monday issued a framework allowing offline payments up to Rs 200 per transaction,
subject to an overall limit of Rs 2,000.An offline digital payment means a transaction that does not require internet or telecom
connectivity.Under the offline mode, payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards,
wallets, and mobile devices.These transactions will not require an additional factor of authentication (AFA), the Reserve Bank of India
lag."Transactions are subject to a limit of Rs 200 per transaction and an overall limit of Rs 2,000 for all transactions until the balance
in the account is replenished
Balance replenishment can only occur in an online mode," said the Framework for facilitating small value digital payments in offline
mode.The framework incorporates the feedback received from the pilot experiments on offline transactions conducted in different parts of the
obtaining the specific consent of the customer.The customers, it added, will continue to enjoy protection under the provisions of circulars
can be made using any channel or instrument like cards, wallets, and mobile devices."Offline payments shall be made in proximity
(face-to-face) mode only," it said and added that such transactions may be offered without AFA.Also, such transactions using cards should be
allowed without a requirement to switch on the contactless transaction channel.
