RBI MPC Meeting: Digital payment solution in offline mode to be introduced soon, says Governor Shaktikanta Das

RBI MPC Meeting: The Reserve Bank of India (RBI) on Friday made the policy announcements of the Monetary Policy Committee (MPC) meeting that started on October 6, 2021, and continued till today, October 8, 2021. RBI Governor Shaktikanta Das made some important announcements on the introduction of retail digital payment solution in offline mode.

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The RBI Governor informed that a scheme to test technologies that enable digital payments even in remote places where internet connectivity is either absent or barely available was announced in August 2020. The statement on Developmental and Regulatory Policies dated August 06, 2020 had announced a scheme to conduct pilot tests of innovative technology that enables retail digital payments even in situations where internet connectivity is low / not available (offline mode).

It must be noted that three pilots were successfully conducted under the Scheme in different parts of the country during the period from September 2020 to June 2021 involving small-value transactions covering a volume of 2.41 lakh for value Rs 1.16 crore.

Now, given the encouraging experience gained from the pilot tests, it is proposed to introduce a framework for retail digital payments in offline mode across the country. This will further expand the reach of digital payments and open up new opportunities for individuals and businesses.

The learnings indicate that there is a scope to introduce such solutions, especially in remote areas. The detailed guidelines will be issued in due course.

In related news, the RBI on Friday decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave.

RBI Governor Shaktikanta Das said that according to the release of National Statistical Office on August 31, real GDP growth for Q1:2021-22 at 20.1 per cent exhibited resilience of the economy in the face of the destructive second wave of COVID-19. While retaining the GDP growth at 9.5 per cent for 2021-22, RBI Governor said almost all components of GDP registered y-o-y growth, despite a sharp loss of momentum due to the second wave.