Under the scheme, authorized Payment System Operators (PSOs) – banks and non-banks – will be able to provide offline payment solutions using cards, wallets, or mobile devices for remote or proximity payments.
This scheme will be available until March 31, 2021 only.
RBI said that it has observed that even though there has been considerable growth in digital payments using mobile phones, cards, wallets, etc., the lack of internet connectivity and other related issues have been acting as a hurdle in the adoption of digital payments.
In its statement, the RBI said: "There has been considerable growth in digital payments using mobile phones, cards, wallets, etc. Lack of internet connectivity or low speed of the internet, especially in remote areas, is a major impediment in the adoption of digital payments. Against this backdrop, providing an option of off-line payments through cards, wallets, and mobile devices is expected to further the adoption of digital payments."
"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 off-line mode with built-in features for safeguarding the interest of users, liability protection, etc," it added.
Offline Retail Payments using cards/wallets/mobile devices - How it works
In the offline payment solution, using cards, wallets, etc. the card data and details of the transaction are stored at the terminal. This also generates a transaction response including data you can use to generate a receipt. Later, when the internet connection is established, it sends the stored payment data to the payments platform for further processing.
The payment solutions provided to users shall be subject to the following terms and conditions:
Payments could be made using cards, wallets, or mobile devices or through any other channel.
Payments may be made in remote or proximity mode.
Payment transactions can be offered without any Additional Factor of Authentication (AFA).
The upper limit of a payment transaction shall be Rs 200.
The total limit for offline transactions on an instrument shall be Rs 2,000, at any point of time. Resetting of the limit shall be allowed in online mode with AFA.
The PSO shall send real-time transaction alerts to users as soon as transaction details are received.
Contactless payments shall adhere to EMV standards, as hitherto.
Payment transactions in offline mode without AFA shall be at the choice of the user.
The acquirer shall incur all liabilities arising out of technical or security issues at the merchant’s end.
Progressive step taken by the RBI.
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