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The Reserve Bank of India (RBI) has issued a framework allowing offline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000. An offline digital payment means a transaction that does not require internet or telecom connectivity. Offline transactions are expected to give a push to digital transactions in areas with poor or weak internet or telecom connectivity, particularly in semi-urban and rural areas. The new framework is applicable with immediate effect.

Under the offline mode, payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets, and mobile devices. These transactions will not require an additional factor of authentication (AFA). Since the transactions are offline, alerts (by way of SMS and/or e-mail) will be received by the customer after a time lag.

The offline mode of payment can be enabled after obtaining the specific consent of the customer. The customers will continue to enjoy protection under the provisions of circulars limiting customer liability and will have recourse to the Reserve Bank Integrated Ombudsman Scheme for grievance redress. Further, the acquirer should incur all liabilities arising out of technical or transaction security issues at the merchant’s end. The RBI also emphasized that offline payments will be covered under the provisions of its limited customer liability circulars.