What’s in the news?

• The RBI has announced a scheme on pilot basis for offline retail payments using cards and mobile devices to encourage customers to go for digital transactions even in those places that lack internet connectivity.
• The central bank said that based on experience gained, detailed guidelines for the rollout of the scheme will be announced in due course.
• Observing that lack of internet connectivity or low speed of internet, especially in remote areas, is a major impediment in adoption of digital payments, the RBI said against this backdrop, providing an option of offline payments through cards, wallets and mobile devices is expected to further the adoption of digital payments.

Online Dispute Resolution 

• Meanwhile, the RBI also said Payment System Operators (PSOs) will have to implement Online Dispute Resolution (ODR) as there is a concomitant increase in the number of disputes and grievances as digital transactions rise significantly.
• Recourse to technology-driven redressal mechanisms that are rule-based, transparent and involve minimum (or no) manual intervention is necessary to deal with disputes and grievances in a timely and effective manner.
• PSOs are required to introduce ODR systems in a phased manner. To begin with, authorised PSOs shall be required to implement ODR systems for failed transactions in their respective payment systems.
• Based on the experience gained, ODR arrangements will be extended to other types of disputes and grievances.

Reference:

1. https://timesofindia.indiatimes.com/business/india-business/rbi-to-allow-offline-payments-through-cards-on-pilot-basis/articleshow/77392637.cms