The transaction limit in offline mode has been increased from Rs 200 to Rs 500. Its wallet limit is Rs 2,000 as before. After this decision, users will be able to pay up to Rs 500 even without internet.
The Reserve Bank of India (RBI) on Thursday raised the transaction limit for small value digital payments to be done offline from Rs 200 to Rs 500 per transaction. A notification issued by the central bank said, “This direction will come into force with immediate effect.”
It further states that all other instructions relating to small value digital payments shall remain unchanged. Offline digital payment means a transaction that does not require internet or telecom connectivity.
Significantly, the UPI Lite transaction limit in offline mode has been increased from Rs 200 to Rs 500. Its wallet limit is Rs 2,000 as before. After this decision, users will be able to pay up to Rs 500 even without internet. Small value digital payments can be made in offline mode using National Common Mobility Card (NCMC) and UPI Lite.
What is RBI’s plan
RBI had proposed to increase the transaction limit in the address of the Monetary Policy Committee on 10th August. It had clarified that while the per transaction limit is being increased to Rs 500, the overall limit will be retained at Rs 2,000 as before to contain the risks associated with the relaxation of two-factor authentication.
Digital transactions will get a boost
Let us know that in January 2022, the RBI had issued a ‘framework for facilitating small value digital payments in offline mode’. The move was aimed at promoting digital transactions in rural and semi-urban areas. Through this facility, users can do transactions even without internet.
Google Pay launches UPI Lite service
Last month, Google Pay launched a new UPI Lite service on its platform. UPI PIN will not be required for transactions through UPI Lite service on Google Pay. This work can be done in one tap. It can also be accessed in offline mode.
