Categories: RBI Consultancy

RBI allowed Offline Small Digital Payments Mode upto 2000

RBI: Small Value Digital Payments up to Rs. 2k allowed by RBI in Offline Mode (OTP/ without Internet)

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.

Those who want to provide or enable payment solutions that allow small-value digital payments to be made offline must meet the following requirements:

  • Offline payment is one that takes place without the use of the internet or telecommunications. Authorized Payment System Operators and Payment System Participants (PSPs) – Acquirers and Issuers (banks and non-banks) – who want to provide or enable payment solutions that enable small value digital payments in offline mode must meet the following requirements:
  • Offline payments can be made using any channel or instrument, such as credit cards, wallets, or mobile devices.
  • face/ Offline payments must only be made in person.
  • Offline payment transactions may be available without the need for an AFA.
  • On the basis of the customer’s explicit authorization, payment instruments will be enabled for offline transactions. Such card transactions will be permitted without the need to activate the contactless transaction channel.
  • The maximum amount for an offline payment transaction is $200. At any one time, the overall limit for offline transactions on a payment instrument is Rs. 2,000. Only online replenishment of the used limit with AFA will be permitted.
  • As soon as transaction data are received, the issuer will send transaction alerts to users. There is no requirement to issue an alert for each transaction; nonetheless, each transaction’s data must be clearly communicated.
  • All obligations deriving from technical or transaction security issues at the merchant’s end shall be borne by the acquirer.
  • On the basis of the customer’s explicit authorization, payment instruments will be enabled for offline transactions. Such card transactions will be permitted without the need to activate the contactless transaction channel.

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Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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