HDFC's OfflinePay Gets RBI Approval; Also Know UPI-Powered Offline Payment Methods

The Reserve Bank of India (RBI) on December 11, 2023, approved HDFC Bank's OfflinePay after its successful testing under the regulatory sandbox program. OfflinePay, an app enabling payments without mobile networks, can now be onboarded by banks and NBFCs, to provide seamless transactions in network-challenged areas. Customers can add up to Rs 2,000 to the OfflinePay wallet through UPI e-payment, the HDFC bank website says. "The product ‘Offline Retail Payments’ provides the capability for customers and merchants to be able to transact in offline mode. The solution aims to boost adoption of digital payments in areas of no or low network by enabling transactions without the need to have a network connection," the product description in the RBI release said.

The application allows customers and merchants to make and receive payments from an on-device wallet even when there is no mobile network. It comes to use in congested public spaces, parking lots, trains, ferries and flights, the bank said.

Also Read: RBI To Release Framework For Loan Web Aggregators; Here's What It Means For Customers

Meanwhile, after UPI payments National Payments Corporation of India (NPCI) continues its innovations now allowing the linking of multiple payment instruments or account types on UPI including Savings, Current, RuPay Credit Cards, PPI Wallet, Pre-sanctioned Credit Lines, e-RUPI Voucher etc. On December 13, 2023, NPCI stated that during the phase of educating and enabling merchants on multiple payment instruments, superior customer experience must be maintained while performing UPI transactions.

Offline Modes Of UPI Transactions

UPI Lite X: UPI Lite X transactions, a modified version of UPI don’t require internet connectivity as it uses Near Field Communication (NFC) technology for enabling transactions. But you have to be near the sender or receiver to receive or send the funds. Unlike UPI or UPI Lite, it requires both devices to be close to each other.

123PAY UPI: 123PAY UPI offers feature phone users the ability to make UPI payments without the internet. Through UPI 123PAY, users can initiate transactions via IVR (interactive voice response). Pre-defined IVR numbers (080 4516 3666 & 080 4516 3581 & 6366 200 200) would require users to initiate a secured call from their feature phones to a predetermined number and complete UPI on-boarding formalities to be able to start making financial transactions without internet connection.