RBI releases framework for Facilitating Small Value Digital Payments in Offline Mode

Small Value Digital Payments in Offline Mode

RBI releases framework for Facilitating Small Value Digital Payments in Offline Mode

  • The Reserve Bank of India has issued the guidelines for facilitating small value digital transactions in offline mode.
  • Payment/transaction will be considered offline when the transaction does not require internet or telecom connectivity to take effect. 
  • Authorised Payment System Operators (PSOs) and Payment System Participants (PSPs) – Acquirers and Issuers (banks and non-banks) should comply to the following requirements for this small value digital payments in offline mode:
    • The upper limit of an offline payment transaction is fixed at Rs. 200. The total limit for offline transactions on a payment instrument shall be Rs. 2,000 at any point in time. Replenishment of used limit shall be allowed only in online mode with AFA.
    • Offline payments can be made using any channel or instrument like cards, wallets, mobile devices, etc.
    • Offline payments can made in proximity (face to face) mode only.
    • Offline payment transactions can be offered without Additional Factor of Authentication (AFA).
    • The acquirer shall incur all liabilities arising out of technical or transaction security issues at merchant’s end.

Points to remember:

  1. What is the upper limit per transaction fixed by RBI for small value digital transactions in offline mode?- Rs 200
  2. What can be the total limit for offline transactions on a payment instrument at any point of time in case of small value digital transactions in offline mode?- Rs 2000
  3. Who shall incur all liabilities arising out of technical or transaction security issues at merchant’s end in case of small value digital transactions in offline mode?- acquirer

Source: RBI

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