No Internet? No Problem, As Indian Regulator Enables Offline Digital Payments

Background

In a significant boost for offline digital transactions, the Reserve Bank of India (RBI) has released a framework¹ for facilitating small value digital payments in offline mode. An 'offline digital payment' is a transaction that does not require the internet or telecom connectivity. The framework, effective from January 3, 2022 is expected to boost digital transactions in areas with no or poor internet or telecom connectivity, particularly in semi-urban and rural areas in India.

As per the RBI's 'Statement on Developmental and Regulatory Policies'², three pilots were successfully conducted in different parts of India to test small-value transactions. Based on the feedback, the RBI thought it fit to introduce such solutions and a framework suitable for conducting retail digital payments in offline mode throughout India. This is the first framework of its kind to enable digital payments sans the internet.