UPI Payments May Soon Be Possible Without an Internet Connection; Here's How

The National Payments Corporation of India (NPCI) is reportedly developing a new offline UPI payment feature that could allow customers to make payments at merchant point-of-sale (PoS) terminals even when both the smartphone and the terminal are not connected to the internet. 

According to a Business Standard report, the proposed system will use Near Field Communication (NFC) technology and may support transactions of up to ₹2,000 by simply tapping an NFC-enabled smartphone on an NPCI-certified offline PoS terminal. 

How Could Offline UPI Payments Work? 

As per the report, users would first load money into their UPI Lite wallet while connected to the internet. Once the balance is loaded, they could make payments at certified offline PoS terminals without requiring internet connectivity or entering a UPI PIN. 

The offline terminal would record the payment authorisation and transmit it for verification once network connectivity is restored. 

The feature is expected to benefit users in locations where internet connectivity is unavailable or unreliable, such as aircraft cabins, underground metro networks, and remote areas. 

NPCI May Begin Certifying PoS Devices 

According to the report, NPCI is likely to begin certifying PoS terminals from leading manufacturers in 2026. 

PoS providers would need NPCI certification before enabling offline UPI acceptance on their devices. Banks and third-party UPI application providers are also reportedly working to integrate the capability into their apps. 

Read More: NPCI Teams Up with HSBC India and JP Morgan for Real-Time Forex Settlement!

How Is It Different from UPI Lite X? 

NPCI introduced UPI Lite X in 2023 to enable offline UPI transactions using NFC-enabled smartphones. 

Instead of using NFC-enabled QR codes or soundboxes, payments would be accepted through NPCI-certified conventional PoS terminals, allowing merchants to receive offline UPI payments using existing payment hardware once certified. 

How Does the Reported ₹2,000 Limit Compare with RBI Rules? 

The Business Standard report states that the proposed feature may allow offline UPI payments of up to ₹2,000 per transaction. 

However, under the Reserve Bank of India's (RBI) current offline digital payments framework: 

NPCI has not yet issued official operating guidelines explaining how the proposed offline PoS payment limit would align with the existing RBI framework. 

UPI Continues to Record Strong Growth 

According to NPCI data, UPI processed 22.72 billion transactions worth ₹28.92 lakh crore in June 2026, highlighting the growing adoption of digital payments across the country. 

Conclusion 

NPCI is reportedly developing an NFC-based offline UPI payment feature that could enable payments on certified PoS terminals without internet. The feature is yet to be officially announced, and NPCI is expected to release operational guidelines in due course. 

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