RBI To Offer Offline Payments Via Cards, Wallets, Mobiles: Here's How It Works

At various occasions you might find it difficult to carry out credit or debit card transactions and payment fails. This may be due to internet connectivity issues or failure in establishing connection with the payments company. Nonetheless to overcome it RBI on Thursday announced that it will soon provide offline payments using cards and mobile devices.

RBI To Offer Offline Payments Via Cards, Wallets, Mobiles: Here's How It Works

In the pilot model, RBI would permit small value payment via offline means ensuring user interest, liability protection among others. Herein the role of authorized payment system operators or PSOs will come into play i.e. both banking and non-banking entities who would allow offline payment using cards, mobile devices or wallets for distant as well as proximity payments. The pilot scheme will be on offer only until March 31, 2021.

How Offline Payment On Debit, Credit Cards, Wallets Works?

While initiating offline payment via card, both the card data as well as transaction details get saved on the terminal that results in the generation of a transaction response. And as and when the internet gets connected, it sends the saved payment details for processing to the payments partner.

This off line payments method via cards, mobile devices and wallets will boost up the use of digital payments which despite its considerable growth is still in the slow lane in some of the remote areas owing to internet connectivity (slow speed of net) issues.

Offline payment solutions offered will be subject to the below conditions:

1. Payment could be made via cards, wallets or mobile devices or via any other channel.

2. Payments can be executed in remote or proximity mode.

3. Payment transaction can be done without any additional factor of authentication or AFA.

4. At any given point of time, the maximum limit of offline transaction on an instrument shall be Rs. 2000. Resetting of the limit shall be permitted via online mode employing AFA.

5. The PSO or payment system operators shall send over transaction alerts in real time to users as soon as transaction details are received.

6. Further offline payments without AFA shall be based on the user's choice.

7. Contactless payments will comply with EMV standards.

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