Can you make payments without internet connectivity? RBI’s offline e-rupee initiative explained
Payments could work even without an internet connection in the near future, as the Reserve Bank of India (RBI) is exploring a new initiative that would enable offline e-rupee transactions using technologies such as Bluetooth and near-field communication (NFC).
In a recent X post, the central bank said: “What if you could make payments – even without internet connectivity? Through HaRBInger, RBI is encouraging innovations that reimagine the possibilities of digital payments, such as enabling offline e ₹ transactions using Bluetooth and NFC. Because the future of payments should work everywhere, in every situation.”
The RBI’s statement highlights the role of its HaRBInger initiative in encouraging innovations in digital payments, particularly for situations where transactions need to be made in remote areas with limited internet connectivity or in regions where bandwidth is generally low.
What is offline e ₹?
The digital rupee or e ₹, is issued by the RBI and can be used for making payments, much like using cash. It also offers similar features to physical currency, including ease of use, the guarantee of the RBI and finality of settlement.
The offline feature of e ₹ allows user to make transactions in locations with limited or no internet connectivity. It is expected to mirror the advantages of physical cash, according to RBI’s FAQ dedicated section on the digital currency.
The RBI also says that different solutions are currently being explored. One solution facilitates transactions without internet but still requires telecom connectivity, while another solution facilitates transactions leveraging NFC communication on merchant POS terminals.
How is e ₹ different from UPI?
Explaining how the digital-rupee is different from UPI, the RBI’s FAQ section states that “e ₹ is a digital form of ₹ whereas UPI is a means of payment.”
Users can hold the digital currency in an e-rupee wallet after withdrawing it from their bank accounts. For payments between e-rupee wallets through a central bank digital currency (CBDC) QR code, the transaction takes place between the wallets and does not pass through the users’ bank accounts.
An e-rupee app can also be used to scan a UPI QR code. In such cases, the payment follows the same UPI process that is in place currently.
How to get e ₹ app?
An individual can start using the e ₹ wallet by downloading the e ₹ app from the Play Store or the App Store and by following the App instructions, according to the RBI’s FAQs.
Further, detailed instructions on using the e ₹ wallet can be checked with the banks and non-banks providing the wallet. Payments to merchants can be made by scanning either the CBDC QR code or the UPI QR code available at the respective merchant location.
No launch date yet
The RBI has not announced a launch date for the offline e ₹ feature. The central bank said the digital rupee is currently being pilot tested through studies across the country, covering both retail and wholesale segments.
It describes the e ₹ pilots as limited-scale, controlled roll-outs intended to test the technology, architecture, scalability, applications, features, use cases and acceptance of the digital currency.
The offline feature is part of this broader process of exploring how digital rupee transactions can work in situations where internet connectivity is limited or unavailable, like we discussed above.
