Ever happened with you? You are stuck in a remote area and you have to go home but you don’t have any cash or internet connectivity. If yes then don’t worry as now you will be able to buy something or do any transaction up to a limit of Rs 200 using a mobile phone or wallet without internet.
This has become possible as Reserve Bank of India (RBI) has allowed offline mode of small value payments using any channel or instrument like cards, wallets or mobile devices with immediate effect. This can be seen as a huge step towards PM Modi’s Digital India campaign.
How to do offline payments?
Offline transactions are restricted to a maximum of Rs 200 per transaction and Rs 2,000 for all transactions till the account balance is refilled. Customers should have Rs 2,000 in their phones or wallets.
A transaction that does not require internet or telecom connectivity is referred to as offline digital payment. Such payments can now be made face-to-face (proximity mode) with any channel or instrument, including cards, wallets, and mobile devices. An Additional Factor of Authentication would not be required for such transactions (AFA). "While this is primarily for the acceptance of small value transactions, it is a significant step toward the country's overall financial inclusion aspirations," said Deepak Chandnani, Worldline's MD for South Asia and the Middle East.
No Immediate Alerts:
Because the transactions are offline, the customer will receive alerts (through SMS or e-mail) after some time. Only after receiving express consent from clients, the offline mode of payment be allowed. Customers will be protected by the provisions of RBI circulars that limit customer responsibility, as revised from time to time. However, only online refilling of the used limit using AFA should be permitted.
Digital payments via mobile phones, cards, and wallets have seen a significant increase. Lack of internet connectivity or insufficient internet speed, particularly in rural locations, is a key barrier to digital payment acceptance. Against this context, offering off-line payment options via cards, wallets, and mobile devices is likely to boost digital payment uptake.
The Reserve Bank has pushed for the development of offline payment solutions. "RBI's new framework for retail digital payment in offline mode is badly needed," said Nipun Jain, CEO of RapiPay Fintech. "Internet availability in rural areas is unreliable and inhibits digital transactions."
