The National Payments Corporation of India (NPCI) is developing a new offline UPI payment feature to enable uninterrupted digital transactions in areas with no mobile network coverage. This system is specifically designed for environments with unreliable or unavailable connectivity, such as aircraft cabins, underground metro stations, and remote rural locations.
The proposed technology will rely on near-field communication (NFC). Users will be able to make payments simply by tapping their smartphones against compatible, conventional merchant Point-of-Sale (PoS) terminals. This setup eliminates the need for an active internet connection or a UPI PIN at the exact time of purchase.
Operationally, the system expands upon the existing UPI Lite framework. Customers must first load funds into their on-device UPI Lite wallet while they are connected to the internet. When making an offline purchase, the certified merchant terminal records the customer’s tap authorisation. It safely stores the data locally and then transmits the payment details for final bank verification later once internet connectivity is restored.
This upcoming solution differs significantly from the older UPI Lite X platform launched in September 2023. Instead of requiring specialised merchant stickers or unique QR-based hardware, this new feature upgrades the conventional card-swipe PoS terminals that merchants already use. NPCI plans to start certifying compatible hardware from major terminal manufacturers in 2026.
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However, regulatory questions remain regarding transaction limits. While industry sources suggest the offline PoS system might allow up to ₹2,000 per transaction, current Reserve Bank of India (RBI) rules strictly cap offline digital payments at ₹500 per transaction and limit the maximum allowable offline wallet balance to ₹2,000. Third-party applications and banks are currently building independent software support to prepare for the official rollout.
