According to the Statement on Development and Regulatory Policies, “The Statement on Development and Regulatory Policies dated August 06, 2020 announced a plan to conduct pilot trials of innovative technology that will enable retail. digital payment Even in situations where internet connectivity is low/not available (offline mode). Three pilots were successfully conducted under the scheme in different parts of the country during the period from September 2020 to June 2021, involving small value transactions covering a volume of 2.41 lakhs valuing Rs 1.16 crores. The learnings indicate that there is scope to offer such solutions, especially in remote areas. In view of the experience and encouraging response from the pilots, it is proposed to introduce a framework for making retail digital payments in offline mode across the country. Detailed guidelines will be issued in due course. ”
The pilot scheme for small value retail transactions in offline mode was done using leaves And mobile wallet.
As per the guidelines of the pilot scheme, the upper limit for payment transactions was Rs 200 and the total limit for offline transactions was Rs 2,000 at any point of time. In addition, such payment transactions were made without the additional factor of authentication.
Over the past few years, the Reserve Bank has prioritized security measures for digital payments such as the need for additional authentication factor (AFA) and online alerts for every transaction to enhance customer confidence and security. This was done to enable the adoption of digital payments.
Lack of, or unregulated, internet connectivity, especially in remote areas, is a major impediment to the adoption of digital payments. The availability of options to make payments offline using cards, wallets or mobile devices can boost the adoption of digital payments.
To encourage technological innovations enabling offline digital transactions, the Reserve Bank had proposed to allow a pilot scheme to operate for a limited period. Under the pilot scheme, authorized payment system operators (PSOs) – banks and non-banks – were to be allowed to provide offline payment solutions using cards, wallets or mobile devices for remote or proximity payments. The plan was subject to conditions. Other entities having innovative solutions will have to tie up with authorized PSOs.
It was proposed that the pilot scheme would be launched only by March 31, 2021. The Reserve Bank has now decided to launch a scheme in this area.