International Journal of Scientific Research and Engineering Development

The rapid growth of digital payment systems in India has significantly transformed financial transactions. However, the benefits of digital payments are often limited in rural areas due to inadequate internet connectivity, low smartphone penetration, and lack of digital literacy. To address these challenges, the National Payments Corporation of India (NPCI) introduced UPI 123PAY, a without-internet Unified Payments Interface (UPI) payment solution that enables users to conduct digital transactions through feature phones using voice calls, missed calls, IVR services, and sound-based technologies. This study examines the level of awareness, understanding, and adoption of UPI 123PAY among rural residents of Medchal and Mahabubnagar districts in Telangana. The research investigates the socio-economic factors influencing awareness, identifies barriers to adoption, and evaluates the effectiveness of promotional efforts undertaken by financial institutions and government agencies. Data collected from rural respondents reveal that while general awareness of digital payments is increasing, awareness and usage of UPI 123PAY remain relatively low due to limited information, lack of training, and concerns regarding security and ease of use. The study highlights the need for targeted awareness campaigns, digital financial literacy programs, and enhanced support from banks and local authorities to promote the adoption of without-internet digital payment systems. The findings contribute to understanding the role of UPI 123PAY in fostering financial inclusion and bridging the digital divide in rural India.

Kumar Nayak, M.Shravani Rani,"A Study on Awareness of Without-Internet UPI Mobile Payment (UPI 123PAY) with Special Reference to Rural Areas of Medchal and Mahabubnagar Districts" International Journal of Scientific Research and Engineering Development, V9(3): Page(2804-2813) May-June 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.