On January 3, 2022, the Reserve Bank of India (RBI) released a framework for small-value offline transactions in digital mode.

An offline payment refers to a transaction that does not require internet or telecom connectivity to be effective.
Under this new framework offline payments can be carried out face-to-face (proximity mode) using any channel or means like cards, wallets, and mobile devices.

Authorised payment system operators (PSOs) and payment system participants (PSPs) acquirers and issuers (banks and non-banks), who wish to offer payments in offline mode, will have to comply with the requirements under the framework.

Offline payment transactions will not require an additional factor of authentication (AFA)). Since the transactions are offline, alerts (by way of SMS and / or e-mail) will be received by the customer after a time lag.

The upper limit of an offline payment transaction will be Rs 200. The transactions are subject to an overall limit of Rs 2,000 until the balance in the account is replenished. Balance replenishment can only occur in an online mode.
• Bank or non-bank issuer have been mandated to send transaction alerts to users as soon as transaction details are received. However, there is no compulsion to send alert for each transaction.
• Payment instruments will be enabled for offline transactions only after receiving explicit consent of the customer.

What is offline payment?
Transaction which does not require telecom or internet connectivity to take effect are called as offline payment.

Grievance Redressal
As per the framework, customers shall have recourse to integrated ombudsman scheme of RBI, as applicable, for grievance redressal.