 "RBI, Reserve Bank of India")
The Reserve Bank of India (RBI) on Thursday raised the upper limit of an offline payment transaction to Rs 500 from the existing Rs 200 to promote the use of UPI-Lite wallet in areas where internet connectivity is weak or not available.
The total limit for offline transactions on a payment instrument, however, remains Rs 2,000.
In a circular titled "Enhancing transaction limits for Small Value Digital Payments in Offline Mode", the central bank said, "The upper limit of an offline payment transaction is increased to Rs 500."
"Replenishment of used limit shall be allowed only in online mode with AFA," it added. AFA stands for Additional Factor of Authentication.
It also said that offline payments should only be made face-to-face. Moreover, these transactions may be offered without AFA.
The RBI also launched a device wallet called UPI Lite in September last year to increase the speed of small-value transactions on UPI, optimise processing resources for banks and reduce transaction failures.
The product currently processes more than 10 million transactions a month.
Earlier this month, the RBI had proposed facilitating offline transactions using Near Field Communication (NFC) technology to promote UPI-Lite. Transactions through NFC do not require PIN verification.
It had said this feature will not only enable retail digital payments but also ensure speed, with minimal transaction declines in situations where internet or telecom connectivity is weak or not available.
