RBI announces retail digital payments for offline users


Reserve Bank of India Governor Shaktikanta Das announced a new program on offline retail digital payment solutions on Friday.

“A program to test technologies enabling digital payments even in remote locations where internet connectivity is either absent or barely available was announced in August 2020. Based on the encouraging experience gained in the pilot tests, it is proposed to introduce a framework for digital retail payments. in offline mode nationwide. This will further expand the reach of digital payments and open up new opportunities for individuals and businesses, ”he said.

In August last year, the Reserve Bank on Thursday cleared low value offline transactions through cards and mobile devices for one-time payments up to Rs 200 on a pilot basis.

“Three pilots were successfully carried out under the program in different parts of the country during the period from September 2020 to June 2021, involving low value transactions covering a volume of 2.41 lakh for a value of 1, 16 crore rupees. The learnings indicate that it is possible to introduce such solutions, especially in remote areas. Based on the experience gained from the pilots and encouraging feedback, it is proposed to introduce a framework for making digital retail payments offline across the country. Detailed guidelines will be released in due course, “the RBI said in its statement on Friday.

As part of the pilot project, bank and non-bank payment system operators (PSOs) can offer offline digital payments (payments that do not require an internet connection to take effect).

“The Reserve Bank has encouraged entities to develop offline payment solutions. Therefore, it is proposed to allow a pilot program for small amount payments in offline mode with built-in functionality to protect user interests, liability protection, etc. », Declared the governor last year.

The RBI has said that the lack or irregularity of internet connectivity, especially in remote areas, is a major barrier to the adoption of digital payments.

The availability of options to make payments offline, using cards, wallets or mobile devices, could drive the adoption of digital payments, he said.

The upper limit of a payment transaction was then set at Rs 200.

The pilot project was carried out until March 31, 2021.

“Over the years, the Reserve Bank has prioritized security measures for digital payments, such as requiring an additional authentication factor and online alerts for every transaction. These measures have dramatically increased customer confidence and security, leading to increased adoption of digital payments. The Reserve Bank has encouraged entities to develop offline payment solutions, ”the RBI said in a statement on August 6.

The governor of the Reserve Bank, the Monetary Policy Committee (MPC) headed by Shaktikanta Das, announced his policy decision on Friday after the three-day bimonthly review meeting. The Monetary Policy Committee maintained the status quo on the reverse repo rate in order to support growth and fight inflation.

At its last bimonthly MPC review meeting held in August, the Reserve Bank maintained the status quo on key interest rates for the seventh consecutive time and kept the GDP growth target at 9.5. %. He kept the reverse repo rate at 4 percent and the reverse repo rate at 3.35 percent.

The RBI also raised the upper limit of the immediate payment service (IMPS) on Friday. Now bank customers can transfer Rs 5 lakh via IMPS. Previously, the IMPS transfer limit was limited to Rs 2 lakh.

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