NPCI Develops Offline UPI Payments for Flights and Metro Networks
A new NFC-based system will let users make tap-to-pay UPI transactions of up to ₹2,000 even without internet access on either device
Synopsis
NPCI is working on a new feature and will enable UPI payments even at a merchant terminal without internet connectivity of the customers' device or the merchant device. The technology, near field communication (NFC), will allow the system to facilitate up to ₹2,000 transactions, suitable for places such as flights and underground metro network.
AdvertisementThe System will function when?
As expected, the proposed capability is going to be based on the near-field communication technology and will enable users to make offline payments up to ₹2,000 using an NFC-enabled smartphone on a certified PoS terminal.
The feature will require customers to first top-up UPI Lite, the digital wallet available for them on their devices, offline and then pay without an internet connection or UPI PIN.
AdvertisementNear field communication (NFC) is a short-range wireless technology in which two devices can communicate when they are near each other (as it does in contactless card payment). NFC operates at very short-range, and hence is said to be faster and more secure than Bluetooth for such transactions.
Certification and Rollout
The NPCI is expected to start certifying the compatible PoS terminals from top brand manufacturers in 2026. Should the terminal be offline, it will be storing the payment request, and will send it for verification as soon as internet connection is restored.
The preparatory steps for the regulation are already in sight - for instance, the NPCI's BHIM-UPI branding guidelines, revised in June 2026, feature guidelines and design specifications for NFC-enabled QR codes and soundboxes.
Constructing on an old structure
This is not the first time that India has tried offline digital payments. The new feature is part of NPCI's “UPI Lite X” initiative, which was launched in 2023 that allowed offline transfers between two smartphones.
AdvertisementThe National Strategy for Financial Inclusion 2025-30 mentions specific limits for UPI Lite X, with a cap of ₹500 for each transaction on the app and ₹2,000 as the maximum balance allowed in the account, but NPCI hasn't specified how the new limit of ₹2,000 for offline PoS will be connected to these existing limits.
Scale and Use Cases
The system aims to address connectivity issues in everyday life. The feature will be used in environments where connectivity is poor or non-existent, like underground metro networks or aircraft cabins.
The potential size of its operations is reflected in its current volumes – UPI handled 22.72 billion transactions, valued at ₹28.92 lakh crore, in June 2026, per official data from NPCI.
Why It Matters
India's cashless payments ecosystem, which is the world's largest by transaction volume, is one of the remaining areas that is ripe for universal digital payment adoption, known as the "connectivity gap.
The offline functionality, if implemented successfully, would add to the ease of use in transportation hubs, air travel and in rural areas, which have weak mobile network coverage, further strengthening UPI as the mainstay of India's retail payments ecosystem.
