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Small Value Digital Payments up to Rs. 2,000 in Offline Mode (without Internet/ OTP) are authorized by RBI to promote digital transactions in regions where internet or telecom access is inadequate or non-existent: RBI
Based on experiments conducted between September 2020 and June 2021, RBI has allowed small value digital payments up to Rs. 2,000 in Offline Mode (without Internet/ OTP) under the new framework, which takes effect on 03/01/2022, to boost digital transactions in areas with poor or weak internet or telecom connectivity, particularly in semi-urban and rural areas.
In the offline mode, digital payments are made in person using any channel/instrument such as cards, wallets, mobile devices, and so on, without the need for additional authentication/one-time passwords (OTP).
Because the transactions are conducted offline, the consumer will not receive SMS/ email alerts immediately, implying that there will be a time lag before the customer learns of the purchase.
Until the amount in the account is restored/ replenished by the client, digital payments in offline mode will be subject to a cap limit of Rs. 200 per transaction and an overall maximum of Rs. 2,000 for all transactions. Offline digital payments would be authorized only when the client has given their explicit agreement, and the customer will be protected by restricted liability under the RBI Circular, as well as having access to the RBI Integrated Ombudsman Scheme for grievance redress.
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