UPI 123Pay: A Complete Guide to Offline Payments (RBI & NPCI Rules)

In a major push toward Financial Inclusion and the Digital India initiative, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) launched UPI 123Pay. Designed specifically for the 400 million feature phone users in India, this service bridges the ‘digital divide’ by allowing secure, instant transactions without an internet connection. 

Whether you are in a remote area with poor data connectivity or using a basic Nokia/Samsung feature phone, UPI 123Pay ensures you aren’t left behind in the digital economy. 
 
Let’s understand the features in more detail.  

What is UPI 123 Pay? 

UPI 123Pay is an instant payment system that allows users to make P2P (Peer-to-Peer) and P2M (Peer-to-Merchant) transactions using a feature phone without the internet. Launched by RBI Governor Shaktikanta Das, it uses four distinct technologies: IVR (Voice), Missed Call, Sound-based proximity and OEM-integrated apps. 

Key Technical Facts & Limits: 

• Daily Transaction Limit: Up to ₹1 Lakh. 

• Per Transaction Limit: ₹5,000 (Note: NPCI occasionally updates these; always check your bank’s latest circular). 

• Connectivity: Works on 2G/3G networks; no mobile data or Wi-Fi internet is required. 

• Security: Uses Two-Factor Authentication (2FA) (your mobile number and your secret UPI PIN). 

4 Ways to Use UPI 123Pay Without Internet 

Thinking ‘how to use UPI 123 Pay’? Unlike standard UPI which requires a QR code scan, UPI 123Pay offers four flexible methods to suit different user needs. 

1. IVR (Interactive Voice Response) – The Most Popular 

You call a dedicated UPI 123 Pay number and follow automated voice prompts. 

Example: Rajesh wants to send ₹500 to his brother. He dials 080-4516-3666, selects Transfer Money,’ enters his brother’s phone number and confirms with his UPI PIN. 

2. Missed Call-Based Payments 

This method is ideal for merchant payments (P2M). You give a missed call to a number displayed at a shop. You receive an incoming call to verify the amount and enter your PIN. 

Example: A vegetable vendor has a dedicated number. You give a missed call, get a callback and authorise the ₹40 payment for your groceries. 

3. Sound-Based Proximity Payments 

Developed in partnership with tech providers like ToneTag, this uses sound waves to carry data. Your phone ‘talks’ to the merchant’s device using a unique tone. 

Example: At a retail store, you choose the ‘Sound Pay’ option. Your phone emits a tone that the merchant terminal picks up to initiate the transaction. 

4. OEM-Integrated Apps 

Some feature phone manufacturers (like Lava or Jio) have a built-in UPI app that looks like a smartphone app but works via encrypted SMS/data-light protocols. 

Steps to Set Up UPI 123Pay 

Here’s a list of simple steps that you can follow but before you start, ensure your mobile number is linked to your bank account and you have your debit card handy. 

• Dial the IVR Number: Call 9188-123-123 or 080-4516-3666. 

• Select Language: Choose from Hindi, English, or several regional languages. 

• Link Bank Account: Mention your bank name. The system will fetch your account via your registered mobile number. 

• Set UPI PIN: Enter the last 6 digits of your Debit Card and the Expiry Date. Follow the prompts to create a 4 or 6-digit UPI PIN. 

• Start Transacting: You are now ready to send money, check balances, or pay bills. 

UPI 123Pay vs. *99# (USSD): What’s the Difference? 

While both work without the internet, they are different technologies: 

• *USSD (99#): Uses a text-based menu. It can be slow and is often charged by telecom operators (e.g., ₹0.50 per session). 

• UPI 123Pay: Uses voice (IVR) or sound. It is generally faster, more user-friendly and more reliable in low-network areas. 

Major Benefits for Users and Merchants 

• Utility Bill Payments: Through the Bharat Bill Pay System (BBPS) integration, you can pay electricity, water and gas bills via IVR. 

• Mobile Recharges: Instantly top up your talk time without visiting a store. 

• Safety: No risk of ‘phishing’ via malicious links since the transaction is voice authorised. 

• Merchant Empowerment: Small shopkeepers don’t need expensive smartphones or Wi-Fi to accept digital payments. 

[Source: NPCI Official Portal] 

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FAQs on UPI 123Pay 

How can I set up UPI 123 Pay on my phone? 

Dial *99# from the mobile number linked to your bank account to start setup. Follow the voice or on-screen prompts to choose your bank, enter the last 6 digits of your debit card and expiry date and create a UPI PIN. You may also register via your bank’s IVR number if offered. Some feature phones with OEM apps let you complete setup through the phone’s UPI app instead. 

What are the top benefits of using UPI 123 Pay for transactions? 

You can make payments without a smartphone or mobile data, using IVR calls, missed calls, sound-based transfers, or OEM feature-phone apps. This widens access and helps you pay at shops, send money, or pay bills from a basic phone. 

UPI 123 Pay supports multiple regional languages and follows UPI limits and rules, so you get a familiar, standardised payment experience. 

Is UPI 123 Pay secure for transferring money? 

UPI 123 Pay uses UPI’s two-factor authorisation, which includes your UPI PIN for every transaction. Banks and NPCI run the service, so transactions follow regulated security practices. Always keep your UPI PIN private and avoid entering it on calls from unknown numbers. Report any suspicious activity to your bank immediately. 

Can I use UPI 123 Pay without an internet connection? 

Yes. UPI 123 Pay is designed to work without mobile data. You can use IVR calls, missed-call flows, sound-based proximity payments, or feature-phone OEM apps to transact offline. 

Some actions like viewing detailed statements may still need your bank’s app or internet access. 

How do I find my UPI 123 Pay number? 

Banks and NPCI publish the IVR and help numbers for UPI 123 Pay. Check your bank’s website or customer-care page for the specific IVR number to register or transact. 

You can also call your bank’s helpline from the mobile number linked to your account to get the correct UPI 123 Pay number. 

What should I do if my UPI 123 Pay transaction fails? 

If a transaction fails, wait up to 2 working days. Most failed UPI payments are auto reversed to your bank account. If the refund does not arrive, contact your bank with the transaction time, amount and any reference or token number. You can also raise a dispute through your bank’s customer service or the UPI grievance channels. Keep screenshots or notes of any IVR prompts or token numbers to help resolve the issue. 

What is the official UPI 123 Pay number? 

The primary IVR numbers supported by NPCI are 9188-123-123, 080-4516-3666 and 022-6901-9999. Always verify these on the official NPCI website. 

Can I pay a merchant who only has a QR code?

No. Since feature phones lack cameras to scan QR codes, you must use the merchant’s mobile number or their specific ‘Missed Call’ number to make a payment. 

Is UPI 123Pay safe? 

Yes. It uses the same encrypted security framework as standard UPI. Your UPI PIN is required for every transaction. Note: Never share your PIN or OTP with anyone over a call. 

What should I do if a transaction fails? 

Most failed transactions are auto reversed within 48 hours. If not, you can raise a dispute via the NPCI DigiSaathi helpline or contact your bank’s grievance cell. 

Can I use UPI 123Pay on a smartphone? 

Yes. While designed for feature phones, the IVR numbers work from any phone. This is a great backup if you have a smartphone but no data connection (e.g., in a basement or rural trek).