The Reserve Bank of India (RBI) has come out with the framework for facilitating small-value digital payments in offline mode, a move that would promote digital payments in semi-urban and rural areas.

Offline E-payments

• Offline digital payment does not require Internet or telecom connectivity.
• Such payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets and mobile devices.
• Such transactions would not require an Additional Factor of Authentication.
• Since the transactions are offline, alerts (by way of SMS and/or e-mail) will be received by the customer after a time lag.
• There is a limit of ₹200 per transaction and an overall limit of ₹2,000 until the balance in the account is replenished.

Conditions applied

• Payment instruments shall be enabled for offline transactions only after the explicit consent of the customer.
• That apart, these transactions using cards will be allowed without a requirement to turn on the contactless transaction channel.
• The customers shall have recourse to the Reserve Bank – Integrated Ombudsman Scheme, as applicable, for grievance redressal.
• RBI retains the right to stop or modify the operations of any such payment solution that enables small value digital payments in offline mode.

Answer this PYQ in the comment box:

Q. With reference to digital payments, consider the following statements:

1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/ are correct? (CSP 2018)

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Post your answers here.

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