NPCI Develops Offline UPI Tap-to-Pay
The National Payments Corporation of India is reportedly developing an offline UPI tap-to-pay system that could allow passengers to make small payments inside aircraft and underground trains without internet connectivity.
Offline UPI tap-to-pay under development
The proposed feature would enable payments when both the customer’s smartphone and the merchant’s point-of-sale terminal are offline. Transactions would use near-field communication technology, allowing users to tap an NFC-enabled phone against a compatible terminal.
NPCI is expected to begin certifying point-of-sale terminals made by leading manufacturers during 2026. Banks and third-party UPI applications are also reportedly working to support the capability.
However, NPCI has not formally announced the programme or published its final operating rules. The reported ₹2,000 transaction limit should therefore be treated as provisional.
How UPI payments without internet work
Customers would first add money to an on-device UPI Lite balance while connected to the internet. They could subsequently pay from this preloaded balance at an offline terminal without entering a UPI PIN.
The terminal would store the payment authorisation and transmit it for verification after connectivity is restored. This could make UPI useful in aircraft cabins, underground railway systems and locations with weak or unavailable mobile networks.
The proposed system would extend existing UPI Lite X technology to conventional NPCI-certified merchant terminals.
₹2,000 offline UPI limit proposed
Reports indicate that individual transactions could be capped at ₹2,000. This differs from current RBI rules, which generally limit offline digital payments to ₹500 per transaction and ₹2,000 outstanding on an instrument.
NPCI would therefore need to clarify how the proposed ceiling complies with the existing regulatory framework before commercial deployment.
UPI processed approximately 22.72 billion transactions in June 2026. Expanding offline acceptance could help the platform compete with contactless cards in locations where real-time payment authorisation is difficult.
