Mumbai: Reserve Bank of India (RBI) has enabled all payment providers to facilitate small ticket payments to Rs 200, digitally without internet or telecommunication connectivity and without additional authentication factors.
Payment can be made through safe instruments including cards, wallets or cellphones.
Although there is no coercion to send a warning for each transaction, the provider must deliver the details of each transaction.
According to the payment service provider, this will be similar to how payments are made for transportation such as urban metro through a prepaid wallet.
“Because the transaction is offline, warning (via SMS and / or email) will be received by the customer after the time lag.
Transactions are subject to the RS 200 boundary per transaction and the overall limit of Rs 2,000 for all transactions to the balance on the account is recharged.
Charging balance can only happens in on-line mode, “RBI said in a statement.
For banks, the main advantage of such a system is that it will reduce pressure on their core-banking systems and in other infrastructure.
Today if the customer sends one rupee using an integrated payment interface, it touches the CBS Bank.
Also, it increases the number of entries in the passbook book or a monthly customer statement.
Offline low value transactions will take place through a wallet.
It will also help small businesses located in areas with poor telecommunications networks.
“Offline payment mode can be activated only after getting special approval from customers.
Customers will enjoy protection under the round provisions that limit customer obligations issued by the RBI.
Customers also have other ways to reserve banks – Integrated Ombudsman schemes for complaints complaints,” RBI said .
The concept of limited responsibility RBI ensures that customers do not lose money as soon as they tell the bank that their cards are lost.