RBI Increases UPI Offline Payment Limit to Rs 500
Posted on: 25/Aug/2023 10:19:48 AM
The Reserve Bank of India (RBI) has raised the limit for making UPI payments in offline mode to Rs 500, up from the previous limit of Rs 200. This change, effective immediately, aims to promote wider adoption of offline payments while maintaining an overall limit of Rs 2000 to manage the associated security risks.
This policy update falls under Section 10(2) of the Payment and Settlement Systems Act, 2007. Notably, the RBI had initially set a limit of Rs 200 per transaction and an overall cap of Rs 2000 for small-value digital payments in offline mode, including for the National Common Mobility Card (NCMC) and UPI Lite.
The RBI introduced the framework for Facilitating Small Value Digital Payments in Offline Mode in January 2022 to encourage digital transactions in rural and semi-urban areas. In offline mode, face-to-face payments using cards, wallets, and mobile devices can be conducted without requiring additional authentication.
Customers will receive transaction alerts via SMS and/or email, although there may be a time lag due to the offline nature of these transactions. In August 2020, the RBI had proposed a pilot scheme for small value offline payments with built-in features to protect users` interests and liabilities.
