This Is How RBI Will Let You Make Payments Without Cash Or Internet

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posted on 3 years ago — updated on 1 second ago

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According to RBI, “Offline payments may be made using any channel or instrument like cards, wallets, mobile devices, etc."

We have all become dependent on online transactions to some extent or the other. Very often it happens that people don’t carry any cash relying on the likes of Paytm, Phone Pe, and Google Pay, only to find out that the shop they want to buy stuff from either does not accept online transactions, or at times there is no internet connectivity to be able to make any transactions. Now, while the former problem can only be fixed if the shopkeeper accepts online payments, the latter issue can be addressed. Let’s take a look:

So, the Reserve Bank of India (RBI) has allowed offline mode of small-value payments using any channel or instrument like cards, wallter, or mobile devices with immediate effect. This means that users can do any transaction of up to Rs 200 without an internet connection using any mobile phone or wallet. According to the new rule, offline payments are limited to Rs 200.

Now, an offline payment can be done without any internet connection. Under the new framework, such payments can be carried out face-to-face using any channel or instrument like cards, wallets, or mobile devices. These transactions will require users to do an Additional Factor of Authentication (AFA).

The RBI has had three successful pilots of this new small-value transaction program in different parts of the country during the period September 2020 to June 2021. These tests amounted to a total 2.41 lakh transactions at a value of Rs 1.16 crores. Now since the transactions are offline, alerts will be received after a slight lag.

Now, it is still not clear as to how these transactions will go through, but our best guess is that it may be facilitated via SIM services on smartphones and feature phones that do not require internet, just a working phone number. Offline payments are being seen as RBI’s latest step towards boosting digital payments in the country.

According to RBI, “Offline payments may be made using any channel or instrument like cards, wallets, mobile devices, etc. The payments shall be made in proximity (face to face) mode only. Offline payment transactions may be offered without Additional Factor of Authentication (AFA).”

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