RBI caps the upper limit of offline payments up to Rs. 200 per transaction; the overall limit is capped at Rs. 2000

Circular No. RBI/2021-22/146 CO.DPSS.POLC.No.S1264/02-14-003/2021-2022, Dated: 03-01-2022

RBI has introduced a framework to enable small value digital payments in offline mode using cards, wallets, mobile devices, etc. The upper limit of an offline payment transaction has been capped to Rs. 200. The total limit for offline transactions on a payment instrument shall be ?2,000 at any point in time. An offline payment means a transaction that does not require internet or telecom connectivity to take effect. With encouraging feedback from the pilots, 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. Offline payment transactions may be offered without Additional Factor of Authentication (AFA).

RBI held that payment instruments shall be enabled for offline transactions only after the explicit consent of the customer. These transactions using cards will be allowed without a requirement to turn on the contactless transaction channel, relaxing an earlier regulation declared in January 2020.

The customers shall have recourse to the Reserve Bank – Integrated Ombudsman Scheme, as applicable, for grievance redressal. Reserve Bank retains the right to stop or modify the operations of any such payment solution that enables small value digital payments in offline mode.

Additionally, the acquirer should incur all liabilities arising out of technical or transaction security issues at the merchant’s end. The RBI also highlighted those offline payments will be covered under the provisions of its limited customer liability circulars.

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