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The National Payments Corporation of India (NPCI) is developing an offline UPI tap-to-pay feature using Near-Field Communication (NFC) for merchant point-of-sale terminals, reported around 21 July 2026.
The proposed feature would work without internet on either the customer's phone or the merchant terminal, with a proposed cap of Rs 2,000 per transaction, pending certification of PoS devices during 2026.
It builds on UPI Lite X (launched September 2023 for phone-to-phone offline payments) and complements the existing USSD-based *99# service (Rs 5,000 limit).
| Mode | Mechanism | Limit |
|---|---|---|
| USSD *99# | Feature-phone based, no internet/smartphone needed | Rs 5,000 (existing service) |
| UPI Lite X | Phone-to-phone NFC, since Sep 2023 | Small-value offline transfers |
| New NFC PoS tap-to-pay | Phone-to-merchant-terminal NFC (proposed) | Proposed Rs 2,000 per transaction |
Banking Awareness - Digital Payment Systems (UPI ecosystem)
Which of the following is a most likely consequence of implementing the 'Unified Payments Interface (UPI)'?
Answer: Mobile wallets will not be necessary for online payments.
Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct?
Answer: Both 1 and 2
With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct?
Answer: 1 only
Which one of the following best describes the term "Merchant Discount Rate" sometimes seen in news?
Answer: The charge to a merchant by a bank for accepting payments from his customers through the bank's debit cards.
Near-Field Communication — short-range wireless technology enabling contactless/tap transactions
An offline UPI mode launched in September 2023 for NFC-based phone-to-phone payments