NPCI Plans Offline UPI Payments Up To ₹2,000

The National Payments Corporation of India (NPCI) is working on a system to enable offline Unified Payments Interface (UPI) payments at merchant point-of-sale (PoS) terminals. This feature will allow users to make payments even when both the customer's device and the terminal lack internet connectivity.

The proposed system will use near-field communication (NFC) technology, enabling users to make offline payments of up to ₹2,000 by tapping an NFC-enabled smartphone on a certified PoS terminal. To use this feature, users will first need to add funds to their on-device UPI Lite wallet while connected to the internet.

The NPCI is expected to begin certifying compatible PoS devices from leading terminal manufacturers in 2026. PoS terminal manufacturers will require certification from NPCI before enabling offline UPI payments. Once approved, companies can build applications and services on top of the certified system.

The offline-enabled PoS terminals will temporarily store payment authorisation details and transmit the information for verification once internet connectivity is restored. This feature is aimed at improving digital payment access in areas where internet connectivity is weak or unavailable, such as aircraft cabins, underground transport networks, and remote locations.

Banks and third-party UPI application providers are also working on integrating the feature into their platforms. The proposed system builds on NPCI's earlier efforts to enable offline digital payments through UPI Lite X, which was launched in 2023.

UPI Lite X was designed to support transactions without mobile connectivity, including NFC-based person-to-person and merchant payments. However, the upcoming feature differs by extending offline payments to conventional merchant PoS terminals that receive certification from NPCI.

The move is expected to strengthen India's digital payments ecosystem by making UPI more accessible in environments where reliable internet connectivity remains a challenge, while reducing dependence on traditional card-based payment systems.

The expansion of UPI to offline payments will have a significant impact on the digital payment landscape in India. With the growing adoption of digital payments, this feature will provide users with more convenience and flexibility, especially in areas with limited internet connectivity.

In addition, the feature will also benefit merchants, particularly those in rural or remote areas, by providing them with a secure and reliable payment system. The certification process for PoS terminals will ensure that the system is secure and compliant with NPCI's standards.

Overall, the introduction of offline UPI payments is a significant step forward in the development of India's digital payments ecosystem. It will provide users with more options and flexibility, while also promoting the adoption of digital payments in areas where internet connectivity is limited.

The success of this feature will depend on the widespread adoption of NFC-enabled smartphones and the certification of PoS terminals. However, with the growing demand for digital payments, it is likely that this feature will gain traction and become a popular payment method in the near future.

In conclusion, the NPCI's plan to enable offline UPI payments is a significant development in the digital payments space. It will provide users with more convenience, flexibility, and security, while also promoting the adoption of digital payments in areas where internet connectivity is limited.