The Reserve Bank of India (RBI) had recently started work on a pilot project to promote digital payments (Digital Payment). After the pilot, the central bank is now said to be gearing up to implement digital payments without the internet. Under the recent information, the Reserve Bank has fixed an additional limit of Rs.200 for such transactions. This means that the internet will no longer be required for digital payments up to Rs 200. Similar payments can only be made face to face.
RBI was the first to conduct testing with some bodies from September 2020 to July 2021 to promote small digital transactions (Digital Transaction) in offline mode. After this, RBI had approved the pilot scheme on 6th August. Offline payments can be called a transaction that does not require internet or telecom connectivity. According to RBI, authorized payment system operators (PSO) and payment system participants (PSP) will have to follow the new guidelines to adopt such offline digital payments.
Recently RBI has said that it will be possible to make a maximum payment of up to Rs.2000 at a time. On the other hand, after the limit is over, it will have to resort to online mode to increase it and it will be possible to do it with additional factor authentication. This move of the Reserve Bank is expected to accelerate digital payments in rural areas. You must be aware that even today a large population in rural areas does not have smartphones and there are many other areas where there is a network problem. In such a situation, it will now be possible to make digital payments even in such situations.