What changed
The upper limit for a single offline digital payment transaction has been raised to ₹500, up from the previous ₹200 cap set in the January 2022 framework. This change was announced in the August 10, 2023 monetary policy statement and takes effect immediately.
What it means for you
Banks and payment system operators can now process offline transactions up to ₹500 per payment without needing real-time authorization. This should encourage wider adoption of offline digital payments in low-connectivity areas, potentially increasing transaction volumes and reducing cash dependency.
What you must do
- Update your payment systems and merchant terminals to accept offline transactions up to ₹500.
- Communicate the new limit to your merchant partners and customers to drive usage.
- Ensure compliance with all other existing framework instructions, which remain unchanged.
- Monitor transaction patterns and fraud risks associated with higher offline limits.
Who it affects
All authorized payment system operators, Banks offering offline digital payment services, Non-bank payment participants, Merchants and customers using offline digital payments
Does this change affect any other rules in the offline payment framework?
No. Only the per-transaction limit has been increased to ₹500. All other conditions from the January 2022 framework remain applicable.
When does this new limit come into effect?
The circular states it is effective immediately from the date of issuance, August 24, 2023.