India’s digital payments ecosystem could soon enable UPI transactions without an internet connection, as the National Payments Corporation of India (NPCI) is reportedly developing an offline payment feature using near-field communication (NFC) technology.
The system is aimed at locations with poor or no connectivity, including aircraft, underground metro stations and remote areas.
The proposed feature will work through UPI Lite, requiring users to load money into their wallet while online. Once offline, customers can make tap-and-pay transactions at NPCI-certified NFC-enabled point-of-sale (PoS) terminals without entering a UPI PIN.
Merchants’ terminals will store transaction details offline and transmit them for verification once connectivity is restored. Banks and third-party UPI apps are also developing support for the service.
Unlike UPI Lite X, launched in 2023, which relies on NFC-enabled QR codes, stickers and soundboxes, the new system will use conventional PoS terminals, allowing wider merchant adoption after certification.
While reports suggest offline transactions may be capped at ₹2,000, existing RBI rules currently limit offline payments to ₹500 per transaction, with a ₹2,000 offline balance. UPI Lite allows transactions up to ₹1,000 and a wallet balance of ₹5,000.
NPCI has not yet announced operational guidelines or whether regulatory changes will be required.
UPI already supports limited offline payments through *99# and UPI 123Pay, which requires GSM or phone networks. The new NFC-based feature would eliminate the need for any network during payment.
NPCI data shows UPI processed 22.72 billion transactions worth ₹28.92 lakh crore in June 2026, highlighting its continued expansion.
