Digital Payment Process To Get Easier With This Offline Support Introduced By RBI

The Reserve Bank of India (RBI) has added offline option and conversational payments to UPI. Near Field Communication (NFC) technology has been suggested as a way to facilitate offline transactions by RBI Governor Shaktikanta Das. This will lead to ease in the Digital payment process so that people can easily pay even without internet support.

The RBI, in its Statement on Developmental and Regulatory Policies, issued in August 2023, states, “To increase the speed of small value transactions on UPI, an on-device wallet called “UPI-Lite” was launched in September 2022 to optimise processing resources for banks, thereby reducing transaction failures. The product has gained traction and currently processes more than ten million monthly transactions. To promote the use of UPI-Lite, it is proposed to facilitate offline transactions using Near Field Communication (NFC) technology. This feature will not only enable retail digital payments in situations where internet/telecom connectivity is weak or unavailable, it will also ensure speed, with minimal transaction declines.”

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NFC is “forward thinking”, says CEO Kuhoo

Prashant A Bhonsle, Founder & CEO, Kuhoo, online student loan platform, said, “The proposed integration of Near Field Communication (NFC) technology to facilitate offline transactions is a forward-thinking move that can enhance financial inclusion and accessibility. Enabling retail digital payments in situations where internet or telecom connectivity is weak or unavailable will undoubtedly open new avenues for commerce and empower individuals in previously underserved areas. The promise of minimal transaction declines and swift transaction speeds along with an increase in overall transaction limit from Rs.200 to Rs.500, will make the usage of UPI Lite more relevant.”

Additionally, Amit Nigam, COO & Executive Director of BANKIT, said, “This is a major step forward for digital payments in India, and it will make it much easier for people to pay for goods and services even when they don’t have internet connectivity. We believe offline payments in UPI will be a boon for people in rural and remote areas, where internet connectivity is often unreliable. It will also be helpful for people who travel frequently and may not always have access to a reliable internet connection.”

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Conversational UPI is the future of Digital Payment Process

With its simplicity, security, and real-time functionality, UPI has completely changed the Indian digital payment industry. Numerous additional features that have been added to UPI over time have made it possible to meet the economy’s various payment needs. Conversational instructions have enormous potential to improve the UPI system’s usability and, consequently, its reach as Artificial Intelligence (AI) gets more and more ingrained in the digital economy. Therefore, it is suggested to provide a cutting-edge payment method called “Conversational Payments” on UPI, which will allow consumers to communicate with an AI-powered system to start and finish transactions in a secure setting

This channel will be made accessible through UPI channels for both smartphones and feature phones, aiding in the country’s increased adoption of digital technology. The capability would initially be offered in Hindi and English before being made available in additional Indian languages in the future. In accordance with the Statement on Developmental and Regulatory Policies, NPCI will soon receive instructions.