RBI introduces offline payment facility for UPI users

10 Aug 2023 , 02:41 PM

The Reserve Bank of India’s statement on Thursday about the addition of conversational payments and offline capability to UPI Lite signals a major step in the economic trajectory of the country. The central bank increased the UPI lite payment limit from Rs 200 to Rs 500.

The introduction of conversational payments via UPI is a pivotal step for the Indian economy. Users may initiate and authorize transactions using natural language interactions, making the payment process easier and more comfortable.

Another crucial element, according to Suren Goyal, partner at RPS Group, is the incorporation of offline payments to UPI. This feature aims to make transactions as smooth as possible even in areas with limited or unreliable internet access.

In order to harness new technologies for enriching users’ digital payments experience, it is proposed to a) enable ‘Conversational Payments’ on UPI, which will allow users to make payments by conversing with AI-powered platforms, b) Introduce offline payments on UPI using ‘UPI-Lite’ on-device wallet leveraging Near Field Communication (NFC) technology, c) Increase the transaction limit for small value digital payments made in off-line mode from Rs 200 to Rs 500 within the overall maximum of Rs 2,000 per instrument payment, stated RBI Governor Shaktikanta Das.

Customers would be able to start payments offline and finish them when internet connectivity is restored, increasing the accessibility and dependability of digital payments.

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