The Reserve Bank of India (RBI) has cleared a scheme for retail payments in offline mode using cards and mobile devices. The offline mode scheme will work with built-in features for safeguarding the interest of users, liability protection, etc.
How does the scheme works?
Under the scheme Authorised Payment System Operators (PSOs) – banks and non-banks – will be able to provide offline payment solutions using cards, wallets or mobile devices for remote or proximity payments.
The pilot scheme will be available till March 31, 2021 only.
How it works (technical aspect)
In the offline mode using cards, the card data and details of the transaction are stored at the terminal which also generates a transaction response including data you can use to generate a receipt. Later, when the internet connection is established, it sends the stored payment data to the payments platform for further processing.
Check out the terms and conditions of the payment solution:
a) Payments could be made using cards, wallets or mobile devices or through any other channel.
b) Payments may be made in remote or proximity mode.
c) Payment transactions can be offered without any Additional Factor of Authentication (AFA).
d) The upper limit of a payment transaction shall be Rs.200.
e) The total limit for offline transactions on an instrument shall be Rs. 2,000, at any point of time. Resetting of the limit shall be allowed in online mode with AFA.
f) The PSO shall send real time transaction alerts to users as soon as transaction details are received.
g) Contactless payments shall adhere to EMV standards.
h) Payment transactions in offline mode without AFA shall be at the choice of the user.
i) The acquirer shall incur all liabilities arising out of technical or security issues at merchant’s end.
j)Before introducing operations under the scheme, PSOs shall inform Reserve Bank the detailed specifications of the payment solutions they would offer. They may, however, launch operations without waiting for any approval from the Reserve Bank.
k)Entities other than PSOs having innovative solutions may tie-up with PSOs to offer their products.
l)Reserve Bank retains the right to advise a PSO to stop transactions and exit the pilot in the event of non-compliance of these conditions.