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RBI allows offline e-payments: All you need to know | What is offline e-payment?

RBI allows offline e-payments: All you need to know | What is offline e-payment?

RBI allows offline e-payments, All you need to know, What is offline e-payment?
RBI allows offline e-payments


Recently the Reserve Bank of India (RBI) introduced a framework allowing offline e-payments to promote digital payments in rural and small urban areas.

In India, RBI plays the role of a regulator concerning all types of payments.

What is offline e-payment?

It is a type of digital payment which does not require internet or telecom connectivity. In offline mode, payments can be made face to face or by any means of proximity such as cards, wallets, and mobile devices.

The scheme was being worked on by RBI as a pilot project since August 2020; these transactions will not require the additional factor of authentication. Since the payment will be offline, customers will get 'alerts' after some time through SMS or e-mail.

This facility is mainly designed keeping in mind the small value digital payment. In this payment mode, the limit per transaction will be up to Rs 200 and its overall limit has been fixed at Rs 2000, although money can be re-added to the account through online mode only.

For this payment mode, first, the provisions of the circular issued by RBI in this regard will have to be agreed upon. Offline payments can be used only with the permission of the customers. With this move of RBI, small digital transactions will be able to take place even in inaccessible or internet-less areas.


Status of digital payment in India:

In India, 60% of the total digital payment transactions take place through UPI.

According to the RBI report, digital payments have almost doubled in the last 5 years.

According to a report by capital markets company CLSA, digital payments in India will triple from $300 billion in 2021 to $1 trillion by 2026.

National Payment Corporation of India (NPCI) is an umbrella organization for digital payments in the country. It has been established by RBI and Indian Banks' Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.


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