New Feature For UPI Payments Without Internet or Signal Is Coming Soon

Mumbai, July 21, IPU Media Update News: Another revolutionary change is set to transform the country's digital payment system. The National Payments Corporation of India (NPCI) is developing a new feature to facilitate easy UPI transactions even in areas without internet connectivity. This feature will allow payments of up to ₹2,000 to be made offline, even when both the user's phone and the merchant's 'Point of Sale' (POS) terminal are offline. The facility will be introduced using a 'Tap-to-Pay' method based on Near Field Communication (NFC) technology.

According to available information on how this feature works, users must first load money into an 'on-device UPI Lite wallet' while their phone has internet access. Subsequently, when purchasing goods in areas without internet signal, they simply need to tap their NFC-enabled smartphone against the merchant's certified offline POS terminal. The transaction will be completed without the need to enter a UPI PIN. The POS terminal will store the transaction details locally and transmit them for settlement once internet connectivity is restored. No Hassles on Flights and Metros...
This feature is being designed specifically for areas with poor or non-existent network coverage, such as airplanes, underground metro stations, and remote villages. It will significantly enhance the reliability and convenience of digital payments during travel and in locations where signal issues typically arise. Reports suggest that the NPCI may begin the process of certifying POS terminals from major manufacturers by the end of this year.

This initiative builds upon the NPCI's previous efforts regarding offline payments. The 'UPI Lite X' feature, introduced in 2023, enabled offline peer-to-peer (P2P) and merchant (P2M) payments using NFC-enabled QR codes or soundboxes. The upcoming feature aims to extend this capability to standard POS terminals as well. Fintech sources indicate that several banks and third-party UPI apps are already preparing to integrate this feature into their platforms.

UPI transactions in India are taking place on a massive scale. In the month of June alone, payments worth ₹28.92 lakh crore were processed through 22.72 billion transactions. However, connectivity issues remain a hurdle to its full-scale adoption. Under current RBI regulations, the limit for offline digital payments is ₹500 per transaction, and the limit for UPI Lite X is also ₹500.

However, raising the transaction limit to ₹2,000 for the upcoming POS offline feature marks a significant step forward. This will be highly beneficial for covering the small, day-to-day expenses of commuters. The NPCI is expected to release official guidelines regarding this soon. Once implemented, this new system will reduce transaction failures caused by a lack of network signal and instill greater confidence in digital payments among millions of users.

-- M Venkata T Reddy, News Editor and Investigative Journalist