Unified Payments Interface (UPI) is a big news for the common man. Now you can easily make UPI payments even without a network. The National Payments Corporation of India (NPCI) is working on a ‘Tap-to-Pay’ feature, through which both the customer and the merchant can make transactions through POS terminals even if there is no internet on their mobile or device. This service will work on the basis of Near-Field Communication technology. This facility will be especially helpful in places where there is no network at all, such as in-flight or metro / underground trains. By tapping an NFC-enabled phone on an offline PoS terminal, the customer can make payments up to 2,000 at a time.
How to make a payment?
First, the customer will load money into the UPI Lite Wallet of his phone when there is internet. Later, in places where there is no network, he can make payments directly by tapping on the internet without giving any UPI PIN. NPCI will provide certification to enable PoS hardware devices owned by merchants for offline transactions. While offline, the POS terminal will store the customer’s ‘payment authorization’. Later, when the network/internet comes back to the terminal, it will automatically approach the bank to complete the verification and settlement process. Banks and third-party UPI apps like Google Pay, PhonePe, etc. are working to add this feature to their apps.
How is it different from UPI Lite X?
NPCI had earlier introduced UPI Lite X in September 2023, which was designed for offline payments. Along with this, guidelines for Static/Dynamic QR Code and Soundbox for “Scan or Tap to Pay” came out yesterday. While earlier transactions were made only through phone-to-phone or NFC QR/Soundbox, now offline UPI tap payments can also be made possible at authentic/certified PoS terminals at the shopkeeper’s premises.
RBI Rules and Security:
As per Reserve Bank of India (RBI) rules, the limit for normal offline transactions is 500, while there is a specific limit for UPI Lite X. However, the proposed new PoS system will have a limit of 2,000 and the final operating guidelines will be published with NPCI. Customer consent is required for offline transactions. The bank will send a notification to the customer as soon as the data comes on the network. The acquiring company will be liable in case of any technical error on the part of the merchant and the facility of RBI Integrated Ombudsman will also be available for the customers.
