RBI introduces Offline CBDC; users can pay without internet

In a groundbreaking leap for India’s digital payments ecosystem, the Reserve Bank of India (RBI) has unveiled the Offline Digital Rupee enabling users to transact without internet or even telecom connectivity. The new feature allows payments to be made with just a tap or with QR, effectively making digital money work as seamlessly as physical cash. 

Launched today at the Global Fintech Fest (GFF) 2025 in Mumbai, this marks a major milestone in the RBI’s Central Bank Digital Currency (CBDC) journey, positioning India as one of the first countries in the world to operationalize an offline version of a CBDC.

Cash, but digital: India’s programmable CBDC goes truly offline

Branded under the tagline “Cash, but Digital! The offline feature was launched in collaboration with HDFC Bank, a key partner in the RBI’s pilot program. Visuals showcased at the event illustrated real-world use cases such as paying for tea in the Himalayas or making rural market purchases without connectivity. The rollout forms part of RBI’s Programmable Central Bank Digital Currency (PCBDC) initiative which not only allows offline transactions but also introduces programmability, enabling restrictions or specific use conditions on digital rupees for targeted schemes, subsidies, and corporate disbursements.

How it works: Tap, transact, and go

Unlike UPI, which requires an active internet connection and routing through bank servers, Offline Digital Rupee transactions occur directly between two digital wallets using near-field communication (NFC) or other secure proximity technologies.

The payment process is instant: users simply tap their phone or device to the receiver’s, and the value transfers from one wallet to another even in low or no network zones. The RBI has positioned this as a cash-equivalent settlement instantaneous, final, and backed directly by the central bank. Each transaction is executed in digital rupee denominations, with change automatically generated in the wallet, mirroring the behavior of physical cash.

Faster, cheaper, and connection-less

The RBI and participating banks say the offline CBDC will be cheaper and faster than UPI, as it eliminates intermediary switches, payment gateways, and network dependencies. While UPI revolutionized online payments, the offline digital rupee is poised to extend that revolution into the next frontier payments without connectivity.

The feature supports both Person-to-Person (P2P) transfers, and Person-to-Merchant (P2M) payments, making it interoperable with existing UPI QR infrastructure.

“This is not just a technological advancement, it's a foundational shift in how money can move in a connected and unconnected India,” said a senior banker on condition of anonymity. As India continues to set global benchmarks in digital finance, the Offline Digital Rupee could well inspire central banks worldwide to rethink the next generation of sovereign digital currencies.