In order to encourage more digital transactions and payments, Reserve Bank of India (RBI) has now rolled out offline payments for retail outlets.
Maximum limit of Rs 200 has been set for such offline payments. The RBI directives have been issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
How will it work?
RBI Allows Offline Payments Upto Rs 200
RBI Governor Shaktikanta Das has confirmed the roll out of offline payments in India.
Using mobile, E-wallet or any digital devices, users can now digitally pay at retail outlets, without using internet (hence, offline).
The RBI Governor said, “The Reserve Bank has been encouraging entities to develop offline payment solutions. It is, therefore, proposed to allow a pilot scheme for small value payments in offline mode with built-in features for safeguarding interest of users, liability protection, etc,”
The upper limit for such offline transactions is Rs 200, and this program has been rolled out on a pilot basis till March 31, 2021. For any device to accept offline payments, the limit is Rs 2000.
Based on the response and the results, the program can be extended.
The offline payment mode has been allowed by RBI to encourage more digital payments in deep rural hinterland and remote towns, where internet connectivity is poor, and there are no other options except cash.
Offline Payments: How Will It Work?
One of the offline mode of payments is USSD based transactions, wherein a series of commands are given via any mobile phone, even feature phone to carry out the transactions.
Adhil Shetty, CEO, BankBazaar.com said, “Going forward, we can expect to see card- and wallet-based solutions similar to UPI and mobile payment transactions using USSD code that are possible even without internet or smartphones.”
Other ways can SMS based, and NFC based payment, using cards, eWallets and other modes.
Since there will be no OTP or additional factor authentication (AFA) involved in such offline payments, it will be fast, and in real-time.
The payment confirmation and status will be instantly delivered via SMS to the users.
We will keep you updated, as more details come in.
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