The National Payments Corporation of India (NPCI) is working on a new NFC-based offline payment feature for UPI that will enable customers to tap their phones on certified point-of-sale (PoS) terminals to pay up to Rs 2,000 without requiring internet access or a UPI PIN.
- NFC-powered offline UPI payments up to Rs 2,000 at certified PoS terminals
- Prepaid UPI Lite wallet funds enable no-PIN transactions without connectivity
- Certification for PoS devices to start in 2026, focusing on connectivity-challenged locations
What happened
NPCI is developing a feature allowing offline UPI transactions via near-field communication (NFC) at certified PoS terminals. This new system enables customers to tap their NFC-enabled phones on merchant terminals to pay sums up to Rs 2,000 without requiring internet access or online PIN entry. To use this system, customers preload funds into a UPI Lite wallet on their device while online, enabling transactions offline in environments with limited or no network connectivity, such as aircraft cabins and underground metro stations. PoS devices must receive NPCI certification before they can support this offline functionality, anticipated to commence within 2026.
This solution is distinct from NPCI’s earlier UPI Lite X launched in 2023, which supports offline payments using NFC-enabled QR codes, soundboxes, or stickers. Instead of relying on these methods, this new system utilizes conventional PoS terminals operating offline. The offline transaction cap is reportedly Rs 2,000 per payment, which is higher than current RBI-prescribed offline limits but has not yet been clarified by NPCI’s operating rules.
Why it matters
India’s UPI platform processed 22.72 billion transactions worth nearly Rs 29 lakh crore in June 2026, underscoring its central role in the digitization of payments. However, offline payments have been restricted by regulatory limits and reliance on QR or other NFC tag-based solutions that may not fully serve all merchant environments. The introduction of a certified offline NFC PoS system broadens UPI’s usability to scenarios where connectivity is unstable or unavailable, expanding merchant acceptance and consumer convenience.
The ability to handle offline payments through conventional PoS terminals also addresses operational difficulties seen in sector-specific contexts, such as airline payments, where card usage has faced limitations. This innovation potentially enables greater financial inclusion and transaction continuity in everyday and critical settings, supporting India’s broader financial inclusion goals outlined by the RBI.
What to watch next
The industry should monitor the NPCI certification process for PoS terminals set to begin in 2026 and how quickly major manufacturers adopt this capability. The rollout timeline and uptake among banks and third-party UPI app providers developing complementary functionality will be key signals of the solution’s momentum. Clarifications on transaction caps, alignment with RBI’s offline payment limits, and operational rules will also be crucial for widespread adoption and compliance.
Additionally, tracking how this offline NFC PoS payment solution integrates with existing offline payment frameworks, including UPI Lite and UPI Lite X, will reveal how NPCI manages interoperability and user experience across its expanding offline payment ecosystem. Consumer education and merchant readiness will be important to assess early on, particularly in regions and sectors where connectivity challenges are most pronounced.