Offline UPI Payments – What Is It? How To Do It?
Have you ever struggled with paying with UPI due to a poor network connection? At those points, managing cash was the only option to pay someone. But not anymore - you can now make offline UPI payments from your mobile even under poor network coverage.
What Is Offline UPI Payments?
Offline UPI Payment is the UPI transaction that does not need an internet connection. So, an offline UPI transaction will not be network-dependent.
NPCI introduced offline payments using a simple USSD. It helps in making seamless transactions between two accounts so that you can make small value payments no matter where you are.
How To Do Offline UPI Payments with USSD
*99# is the USSD needed for all banking operations, including offline UPI transactions. It is available on four telecom service providers, and the services of all leading banks are available in this USSD.
Setting Up A Device For Offline UPI Payments
First, you need to set up your mobile to get started with offline UPI Payments with *99#. For this,
- Open the dialer and initiate the offline UPI payment process by dialing *99#
- Select language
- Enter the first four characters of IFSC
- Enter your UPI PIN (if your UPI PIN is not set yet, then link the account by selecting the account and entering the debit card details)
Remember: The registered mobile number must be used in the mobile device for this entire process.
On completing the process, you can see options like send money, check balance, set PIN, transaction history, etc.
How To Send Money Offline With *99# USSD?
To send money offline using *99#, select the "Send Money" option. After this, you will have to enter some more details of the beneficiary account, like
- Mobile number
- Amount
- IFSC
Then, you have to enter your UPI PIN, and the transaction will be processed with the correct UPI PIN.
What is the Upper Limit of sending Money using *99#?
One can send up to 5000 rupees using this USSD, where a single transaction can amount to 500 rupees.
What are the charges of transactions?
For each transaction using this USSD, the users need to pay 0.50.
What Other Services Do *99# Offer?
*99# is a platform for mobile banking, and users can do different banking operations using this USSD without an Internet connection. Apart from sending money, one gets the following options by dialing *99#
- Request money
- Check balance
- Access own profile
- Check pending requests
- Check last five transactions
- Change UPI PIN
How Does It Look To Do Offline UPI Payments with UPI Lite
To make offline UPI Payments, UPI Lite is one of the latest inclusions that works as an on-device wallet. You have to add money and use it later in the low or no-network areas. With extensive usage of NFC (Near Field Communication) technology, a successful transaction occurs here – the only condition is both devices must stay close.
UPI Lite comes with only debit transaction facilities, so, the users cannot request money from anyone using UPI Lite.
Transaction Limits for UPI Lite
500 rupees is the highest limit of each UPI Lite X transaction, so it is only for small-value transactions. Overall, a user can add 2000 rupees to this on-device wallet.
Remember: In the bank statements, the transactions through UPI Lite will not be visible, so you cannot see the transactions in the online or offline passbook.
How To Make Payments with UPI Lite?
In respective UPI apps, the users can find the UPI Lite option – they need to enable it by following the mentioned instructions.
Once enabled, the users need to scan a QR to pay after a purchase (alike regular UPI transactions). Now, enter the amount, select UPI lite, and confirm it to complete the transaction successfully. No PIN needed for the transactions amounting below 200. At the time of paying through a payment gateway, you can pick the offline UPI payment option.
The available balance will enter into the default UPI account as soon as a user disables UPI Lite.
Key Differences between UPI and UPI Lite
| Category | UPI Lite | UPI |
|---|---|---|
| Upper Limit | 500 | 1 lac rupees |
| Connection requirements | No | Yes |
| Transaction value | Only small | Both small and large |
| Transaction type | Only debit | Both debit and credit |
| Reflects on bank statement | No | Yes |
| Can send money to | Recipients whose devices are nearby | Recipients across India |
| PIN requirements | Not needed for sending 200 rupees | Must for all transactions |
| Multiple accounts | No, only one can be linked | Yes, all the accounts with the same registered number can be linked |
| Balance brings interest | No | Yes |
Final words
These modes of payments have come into play as RBI aimed to remove the technical hindrance that restricts the path of cashless economy in India. Even in 2024, when smartphones are immensely popular, a huge percentage of Indians use feature phones. Offline UPI payments Initially came to encourage this population to use UPI payments - just someone needs to help them to kickstart.