Can You Make UPI-Like Payments Without Internet? RBI’s Offline e-Rupee Initiative Explained

Imagine needing to make a digital payment when your phone has no Internet connection. Sounds problematic, right? To ease this issue, the Reserve Bank of India (RBI) has been exploring ways to allow transactions through the digital rupee, or e-Rupee, even when Net connectivity is not available.

As part of its innovation efforts, the central bank has highlighted offline e-Rupee transactions using Bluetooth and near field communication (NFC). It has also been exploring different ways to make e-Rupee payments possible in places with limited connectivity, according to a recent post on social media platform X (formerly Twitter).

How Can e-Rupee Payments Work Without Internet

Offline solutions can help users make e-Rupee transactions without an active Internet connection. One of the solutions uses NFC, while another can work without Internet connectivity, but requires telecom connectivity.

Bluetooth-based offline transactions have also been highlighted through the RBI’s HaRBInger innovation initiative. The idea is to allow digital payments in situations where a regular Internet connection is not available.

Is Offline e-Rupee The Same As UPI

No. e-Rupee is a digital form of the rupee, while the Unified Payments Interface (UPI) is a system used to make digital payments.

Users can hold e-Rupee in an e-Rupee wallet after withdrawing it from their bank account. For payments between e-Rupee wallets through a central bank digital currency (CBDC) QR code, the transaction takes place between the wallets and does not pass through the users’ bank accounts.

An e-Rupee app can also be used to scan a UPI QR code. In such cases, the payment follows the existing UPI process.

Where Can Offline e-Rupee Be Used

The RBI has identified locations with limited or no Internet connectivity as a key use case for offline e-Rupee transactions. This can prove to be helpful in areas where users do not have access to a reliable Internet connection.

The central bank has also noted that offline functionality can provide some features associated with cash, particularly for use in remote areas.

Is Offline e-Rupee Available To Everyone

The RBI has been exploring different offline solutions as part of its digital rupee pilot. The Bluetooth and NFC capabilities highlighted through HaRBInger are part of this work on offline e-Rupee transactions. This innovation should not be confused with features that are already available through e-Rupee wallets.