{"id":36510,"date":"2020-08-18T14:07:07","date_gmt":"2020-08-18T08:37:07","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=36510"},"modified":"2022-09-13T15:01:34","modified_gmt":"2022-09-13T09:31:34","slug":"rbi-notification-offline-retail-payments-using-cards-mobile-devices","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/rbi-notification-offline-retail-payments-using-cards-mobile-devices\/","title":{"rendered":"RBI Notification: Offline Retail Payments using Cards\/Mobile Devices"},"content":{"rendered":"

The Reserve Bank of India has proposed a scheme for making small-value payments in offline mode using debit cards, credit cards, and mobile devices. Under this pilot scheme, RBI Notification has authorized Payment System Operators (banks and non-banks) would be able to provide offline payment solutions.<\/p>\n\n\n\n

What was the need for RBI notification on offline retail payments?<\/h2>\n\n\n\n

You could have experienced cases of failed payments while using a credit or a debit card for transactions. This could be due to erratic internet connectivity. Another reason could be the inability of the establishment of the connection with the payments platform.<\/p>\n\n\n\n

The RBI notification on offline retail payments can solve this impediment. Moreover, the availability of options to make offline payments can boost the adoption of digital payments<\/a>. It is also expected to encourage technological innovations that enable offline digital transactions.<\/p>\n\n\n\n

What shall be the period until which the pilot scheme has been made available?<\/h2>\n\n\n\n

The pilot scheme shall be undertaken until 31st<\/sup> March 2021 only. The RBI shall decide on formalizing such a system based on the experience gained under the pilot.<\/p>\n\n\n\n

How does it work?<\/h2>\n\n\n\n

In case of using credit or debit cards in the offline mode, the card data and details of the transactions are stored at the terminal, which generates a transaction response including data you can use to generate a receipt. Once the internet connection is established, it sends the stored payments data to the payments platform for further processing.<\/p>\n\n\n\n

Against this backdrop, providing an option of offline payments is expected to facilitate the adoption of digital payments also.<\/p>\n\n\n\n

What are the terms and conditions laid down as per RBI notification on offline retail payments?<\/h2>\n\n\n\n

Under the pilot scheme, the Payment System Operators (banks and non-banks) can offer digital payments offline. It means payments that do not require internet connectivity to take effect.<\/p>\n\n\n\n

The payments solutions provided to users will be provided subject to the following conditions:<\/em><\/strong><\/p>\n\n\n\n