INDIA is rolling out offline UPI payments

How Offline UPI Works

There are 2 main versions RBI + NPCI are testing:

1. UPI Lite X - Tap & Pay

What: Use NFC to tap your phone on merchant’s phone/PoS

How: Works like a wallet. You load money into UPI Lite balance first when you have internet

Limit: Up to ₹500 per transaction, ₹2000 total balance

No internet needed for both payer + payee during payment

Banks: Launched by NPCI with Airtel Payments Bank, Canara Bank, etc.

2. _99# + SMS based UPI

What: Dial _99# on any feature phone or use SMS

How: No smartphone or internet required. Works on 2G/basic phones

Use: Check balance, send money, pay merchants

Limit: ₹5000 per transaction

3. Soundbox/QR with Delayed Settlement

What: Merchant’s soundbox/QR generates offline token

How: Customer’s UPI app creates an "offline voucher" when internet is off. It gets processed once internet comes back

Used for: Rural areas, metros, buses where network drops

Why it’s being developed

Rural + Low network areas - Markets, buses, trains

Feature phone users - 40+ crore users still on basic phones

Network outages - Festivals, remote areas, disaster zones

Status as of 2026

UPI Lite X is already live with 10+ banks. 300M+ users onboarded

RBI target: Make offline UPI available to 100% of merchants by end of 2026

Merchants: Small shops, street vendors, auto drivers are getting NFC soundboxes

Benefits

No data charges for payment

Instant - no waiting for network

Safe - Uses device PIN/biometric + tokenization

Limitations right now

Amount cap: Mostly ₹200-₹500 per txn for full offline

Both need compatible apps/phones for NFC version

Settlement: Some modes settle later when internet returns

Bottom line: You’ll soon be able to scan and pay at a chai stall even with zero network. Just load your UPI Lite once, then tap to pay.