The National Payments Corporation of India (NPCI) is developing a new offline UPI payment feature that would let users pay at merchant terminals without an internet connection, according to a Business Standard report. The system uses near-field communication (NFC) technology, allowing customers to tap an NFC-enabled smartphone on a compatible point-of-sale (PoS) terminal to complete transactions of up to ₹2,000. The feature is intended for use in areas with limited or no connectivity, such as aircraft cabins and underground metro networks.
Under the proposed system, customers would first pre-load funds into their on-device UPI Lite wallet while connected to the internet. The stored balance can then be used for offline payments without requiring a UPI PIN. A fintech industry source told Business Standard that PoS companies must obtain NPCI certification before they can accept offline UPI payments, after which they can build supporting applications. A second source said the tap-based authorisation is captured at the terminal and forwarded for verification once network connectivity is restored.
NPCI is expected to begin certifying PoS terminals from major manufacturers in 2026. According to the report, banks and third-party UPI app providers are independently developing this capability within their own apps. The report notes this differs from NPCI's existing UPI Lite X system, launched in September 2023, which supports offline transactions through NFC-enabled QR codes, soundboxes, or stickers rather than conventional PoS terminals.
