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?
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| RBI allows offline e-payments |
News:
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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