India has enabled Unified Payments Interface (UPI) payments without internet access through an innovative offline system using the USSD code *99#. This service allows users to make digital transactions even in the absence of internet connectivity, supporting both feature phone and smartphone users across the country.
What is Offline UPI Payment?
Offline UPI payment is a facility that enables individuals to perform UPI transactions using the *99# USSD (Unstructured Supplementary Service Data) code without requiring an internet connection. This service was introduced by the National Payments Corporation of India (NPCI) to promote financial inclusion by extending digital payment capabilities to rural areas and to those with limited access to smartphones or the internet. By dialing *99# from a mobile phone registered with a bank account, users can access a menu to send or receive money, check bank balances, and even manage their UPI PIN securely.
How Does the Offline UPI Payment Work?
Users dial *99# from the mobile number linked to their bank account. This action opens an interactive menu offering various services such as sending money, receiving money, checking bank balance, and changing the UPI PIN. When sending money, users choose a payment method like UPI ID, mobile number, or bank account with IFSC code, enter the recipient details and amount, and authenticate using their UPI PIN. The transaction limit for offline UPI payments is currently capped at Rs 5,000 per transaction, and a small fee (about Rs 0.50) may be charged by banks for each transaction. This mechanism works on both smartphones and basic feature phones, making it accessible to a larger population.
Benefits of UPI Offline Payment
- Accessibility: Facilitates banking in remote and rural locations where internet access is sporadic or unavailable.
- Inclusivity: Extends digital payment services to feature phone users who historically had limited access to online banking.
- Convenience: Allows payments even during internet outages or when mobile data is exhausted.
- Security: Transactions are securely managed by NPCI protocols, ensuring user data protection despite the offline environment.
Supporting Technologies and Initiatives
Alongside the *99# USSD service, India has introduced other offline payment methods such as UPI 123PAY, which uses Interactive Voice Response (IVR) systems allowing users to make UPI transactions on any phone by calling their bank's IVR number, supporting multiple languages. These approaches ensure a seamless transaction experience without internet dependency, further promoting digital payment adoption across the country.
These initiatives collectively work toward India's vision of financial inclusion and digital empowerment, particularly targeting the significant population without internet access or smartphones, bridging the digital divide in financial transactions.
In summary, through the *99# USSD code and related offline methods, India’s UPI system now supports payments without requiring internet connectivity, enabling ubiquitous and inclusive digital banking across diverse user groups and geographical locations
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