HDFC Bank has begun a pilot initiative to enable digital payments in the offline mode under a regulatory mechanism.
According to the largest private bank in the nation, the facility would allow it to complete transactions in no-network locations and urban areas with poor networks.
The offline digital payments pilot project has been launched by HDFC Bank in collaboration with M2P Fintech, Crunchfish AB of Sweden, and IDFC Bank of India. The pilot is taking place as part of the Reserve Bank of India’s (RBI) regulatory sandbox’s fourth cohort.
For retail payments, the fourth cohort’s theme was “On Tap.” In an announcement made in October 2021, the central bank stated that the “On Tap” facility is expected to help in continual innovation and engagement with innovators and proactively respond to the dynamics of the fast emerging fintech landscape.
In a written statement, HDFC announced that it would launch the service as part of a small pilot programme for four months in around 16 Indian cities and towns. Additionally, it will cap offline transactions at INR 200 per transaction.
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“This innovation will accelerate financial inclusion in remote areas by enabling the adoption of digital payments as both merchants and customers can do transactions without any network,” said Parag Rao, HDFC’s country head for the payments business.
