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

The Reserve Bank has placed on its website 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 country during the period from September 2020 to June 2021. 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:

• 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. 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.