RBI announces new UPI features: All you need to know

The Reserve Bank of India (RBI) revealed three new UPI features to enhance the country’s digital payment experience on Thursday. To give clients more convenience, the RBI proposed increasing the UPI Lite offline transaction payment ceiling from Rs 200 to Rs 500. The central bank has introduced Conversational Payments and Near Field Communication (NFC).

Top 3 new UPI features

NFC (Tap and Pay) offline payments on UPI Lite without Internet

The use of near-field communication (NFC) technology for offline UPI payments has also been announced by Das through UPI Lite. Since consumers merely need to tap their smartphones on the point-of-sale (PoS) device, payments will be simpler.

“It is suggested that offline transactions be made easier by utilizing NFC technology to encourage the use of UPI-Lite. According to a statement from the MPC, this functionality would not only enable retail digital payments in circumstances when internet or telecom connectivity is unreliable or unavailable, but it will also guarantee speed and minimize transaction decline.

UPI Lite Offline transaction limit increased from ₹200 to ₹500

The RBI has also suggested raising the UPI Lite transaction cap from Rs 200 in offline mode to Rs 500 per transaction. The Reserve Bank of India (RBI) currently imposes a restriction of Rs 200 per transaction and Rs 2,000 per payment instrument for small-value digital payments made offline, including those made using the National Common Mobility Card (NCMC) and UPI Lite.

AI-enabled conversational (by talking) payments through UPI

In order to improve digital payments, NPCI wants to launch “Conversational Payments” on UPI, which will let users have conversations with AI-powered systems while making payments in a safe and secure setting.

According to Das, this capability will function on both smartphones and feature phones, boosting the country’s digital penetration. First, it will be offered in English and Hindi; eventually, it will also be offered in additional Indian languages. Soon, RBI will give instructions to NPCI.

Although specifics regarding the operation of conversational payments were not disclosed, it is expected that NPCI will advocate for the addition of an AI chatbot like ChatGPT to assist consumers with payments.