The National Payments Corporation of India (NPCI) is testing UPI-based payment solutions which don't require an active internet connection, Mint has reported. The solution is called UPI Lite, and might be used to enable transactions under Rs. 200 in rural areas, the report claims. Earlier this month, the RBI released a framework for offline digital payments. These developments suggest that key stakeholders have taken the initial steps to setup offline digital payments in India, and it is only a matter of time before they become reality. How will UPI payments without internet work? According to Mint, two key solutions are being tested for UPI-based payments that don't require an active internet connection. Both solutions use the SMS network to enable digital payments: SIM overlay: A solution being tested is that of expanding the functionality of the SIM card with an overlay. "The user will have to get it deployed (on their phone) by visiting a store," a government official told Mint. Software Update: The second solution being tested is that of an over-the-air software update that doesn't require an internet connection. This would enable UPI-based payments by utilizing the SMS network. MediaNama has reached out to NPCI for further details about UPI Lite, and will update the story once a response is received. RBI releases framework for offline digital payments On January 3, 2021, the RBI released a comprehensive framework setting out rules and regulations around offline digital payments. Here are key points outlined in the framework: Face to face mode…
