UPI Payments Without Internet: How Offline UPI is Changing Digital Payments in India

UPI is India’s crown jewel in digital finance. In June 2025 alone, it clocked over 18.39 billion transactions worth ₹24.03 lakh crore in payments. But here’s the surprise: a large chunk of Indians still struggle to use UPI because they don’t have a stable internet or even smartphones. There are still Indians still relying on feature phones, and millions more live in areas with patchy connectivity.

Does that mean they’re left out of India’s digital payment revolution? Not anymore. Thanks to innovations by NPCI and RBI, you can now make UPI payments without internet. From dialing a simple code to tapping your phone offline, the system has found ways to bring everyone into the fold.

And this isn’t just another update in digital banking. It represents a fundamental shift in how inclusive India’s payment ecosystem can be. To see why this breakthrough matters so deeply, not just for technology, but for everyday life in villages, towns, and cities, let’s explore why offline UPI matters.

Why Offline UPI Matters

Imagine being in a rural market where mobile data doesn’t work, or running out of internet balance at the wrong time. For years, that meant one thing: no UPI. But India is a country where over 65% of the population still lives in rural areas, and financial inclusion can’t wait for perfect network coverage.

Offline UPI solves this gap. It ensures that even people with the most basic phones can make cashless transactions. Whether it’s paying a kirana store, recharging mobile balance, or transferring money to a relative, UPI without internet ensures “no Indian is left behind.”

Methods of Using UPI Without Internet

Offline UPI is a bundle of solutions designed for different needs. Here are the main ways you can use UPI without internet today:

• USSD *99# Service (NUUP): Dial *99# from any GSM phone. Access menu for balance check, money transfer, and UPI ID payments. Works in 13 languages, across most banks. Transaction limit: ₹5,000 per transaction. Small service charge (around ₹0.50).
• UPI 123PAY (launched in 2022): Designed for feature phones. Four modes: IVR (call-based), missed call, sound-based payments, and special apps for feature phones. Transaction cap: ₹10,000 per transaction.
• UPI Lite X (NFC Tap-to-Pay): Works on NFC-enabled smartphones even without internet. Just tap your phone to the merchant device. Limit: ₹500 per transaction.

Benefits of Offline UPI

The magic of offline UPI lies in its simplicity and inclusivity. Here’s why it matters:

• No internet required – works in low-network areas.
• Financial inclusion – empowers millions who don’t own smartphones.
• Multiple languages – available in Hindi, English, and 11 other Indian languages.
• Low cost – negligible charges, compared to SMS-based or card transactions.
• Secure – backed by RBI and NPCI, requires UPI PIN for authentication.

In short, offline UPI is making sure that the digital economy doesn’t stop at city limits. It’s a powerful reminder that India’s fintech growth story is about inclusion as much as innovation.

Limitations and Transaction Caps of Offline UPI

While offline UPI sounds like a breakthrough — and it is — it also comes with certain limits you should know about.

• *99# (USSD): capped at ₹5,000 per transaction.
• UPI 123PAY: capped at ₹10,000 per transaction.
• UPI Lite X (NFC): capped at ₹500 per transaction.
• Settlement Needs Internet: For UPI Lite X, you must reconnect your phone to the internet within 4 days so that payments can be settled.
• Charges May Apply: The *99# service comes with a small fee (around ₹0.50 per transaction), though some banks may waive it.
• Limited Awareness: Many people in rural areas still don’t know about these options — adoption is slower than the potential.

The Future of Offline UPI

The exciting part? Offline UPI is just getting started. NPCI, RBI, and fintech companies are already working to make it faster, safer, and more widely available.

• Expanding UPI Lite X: More smartphones will soon come with NFC-enabled features, making tap-to-pay without internet a regular habit.
• Broader Bank Participation: NPCI is pushing all banks to adopt UPI 123PAY and *99# to cover every Indian.
• Targeting Rural Reach: Offline UPI is expected to become the go-to solution in 60% of India’s rural regions where mobile data is weak.
• Integration with Services: Expect to see offline UPI powering transit systems, kirana shops, fuel stations, and even P2P transfers in small towns.
• Global Impact: As India exports UPI tech to countries like UAE, Singapore, and France, offline features may also find global takers in regions with patchy internet.

Offline UPI is the missing piece of India’s financial inclusion puzzle. It’s about to ensure that every Indian, regardless of phone type or connectivity, can go cashless.