RBI Imposes Rs 200 Limit For Offline Payments: Make Payments Without Internet! (How Will It Work?)

By Shreya Bose Last updated Jan 4, 2022

RBI has released a framework for offline digital payments to help increase the penetration of digital transactions.

Offline digital payment refers to a transaction which does not require internet or telecom connectivity.

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Promoting Digital Transactions

Under the framework, offline transactions can be made up to Rs 200 without needing additional factor authentication (AFA).

The move will promote digital transactions in areas with poor internet connectivity particularly in semi-urban and rural areas.

It is applicable with immediate effect.

The framework was announced following feedback from a pilot project conducted from September 2020 to June 2021.

Under the project, offline transactions were conducted in different parts of the country.

The absence of — or erratic — internet connectivity, especially in remote areas were found to be an impediment for adoption of digital payments.

Therefore, there was a need to make options available to make offline payments using cards, wallets or mobile devices.

The offline mode can be enabled only after obtaining specific consent of the customer.

Since there is no internet connectivity in these transactions, alerts (by way of SMS or e-mail) will be received by the customer after a time lag.

Transaction alerts will be sent to users as soon as transaction details are received.

Offline payments could be made using any channel or instrument like cards, wallets or mobile devices in proximity (face to face) mode only.

The upper limit of such payments is capped at Rs 200 and there will be no need for AFA.

The total limit on a payment instrument is set at Rs 2,000 at any point in time.

However, the replenishment of used limits will be allowed only in online mode with AFA.

The issuer will send transaction alerts to users as soon as transaction details are received.

Offline payments shall be covered under the provisions of RBI’s limited customer liability circulars.

“The acquirer shall incur all liabilities arising out of technical or transaction security issues at merchant’s end,” the regulator said.

Customers can take to the RBI’s Integrated Ombudsman Scheme for grievance redressal.