Current · Source: Reserve Bank of India · RBI/2023-24/57 · issued 24 Aug 2023 · ~1 min read
Quick answerRBI has increased the per-transaction limit for small-value offline digital payments from ₹200 to ₹500, effective immediately. All other framework conditions remain unchanged.
The rule, in the simplest words
Offline digital payments can now be made up to ₹500 in a single transaction (previously ₹200).
The increase is for small‑value payments that work without real‑time internet connection.
All other rules for offline payments stay the same – no new safety checks or limits are added.
Banks and payment operators must update their systems and tell merchants and customers about the new ₹500 limit.
The change is effective immediately, so it applies to all transactions from today onward.
How it plays out — a real example
A gold‑loan officer in Indore, Rohan, sees a customer wanting to pay ₹450 for a small loan repayment using an offline UPI app. He smiles and tells the customer that the new ₹500 limit means the transaction can go through instantly, even without internet, making the process smoother and faster for everyone.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/57
CO.DPSS.POLC.No.S526/02-14-003/2023-24
August 24, 2023
The Chairman / Managing Director / Chief Executive Officer
Authorised Payment System Operators and Participants (Banks and Non-banks)
Madam / Dear Sir,
Enhancing transaction limits for Small Value Digital Payments in Offline Mode
This has reference to the Reserve Bank of India circular CO.DPSS.POLC.No.S1264/02-14-003/2021-2022 dated January 03, 2022 on “Framework for Facilitating Small Value Digital Payments in Offline Mode”.
2. As announced in the Statement on Development and Regulatory Policies dated August 10, 2023 , the upper limit of an offline payment transaction is increased to ₹500. Other instructions mentioned in the framework shall continue to remain applicable as before.
3. This directive is issued under Section 10 (2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and shall come into effect immediately.
Yours faithfully,
(Gunveer Singh)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/57 · issued 24 Aug 2023. The plain-English explanation above is BankPulse’s own independent summary.
Update your payment systems and merchant terminals to accept offline transactions up to ₹500.
📜 Compliance
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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All authorized payment system operators, Banks offering offline digital payment services, Non-bank payment participants, Merchants and customers using offline digital payments), your first concrete step on “Offline UPI limit raised to ₹500 per transaction” is: “Update your payment systems and merchant terminals to accept offline transactions up to ₹500.” (RBI issued this 24 Aug 2023).
Circular: RBI/2023-24/57 -- Offline UPI limit raised to ₹500 per transaction
Issued: 24 Aug 2023
Action required: Update your payment systems and merchant terminals to accept offline transactions up to ₹500.
Action required: Communicate the new limit to your merchant partners and customers to drive usage.
Action required: Ensure compliance with all other existing framework instructions, which remain unchanged.
Action required: Monitor transaction patterns and fraud risks associated with higher offline limits.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12531&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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