UPI Embraces AI Innovation and Accelerates Offline Payments Adoption

More From Author

See more articles

Bigg Boss 18 Contestants and Their Impressive Net Worths

Bigg Boss, hosted by Salman Khan is all set to launch the 18th season on Colors TV...

Incredible Elon Musk Net Worth: All You Need to...

Elon Musk Net Worth in 2025: Everything You Need to Know Elon Musk, the founder of Space X...

Gautam Adani Inches Closer to Rejoining Top 20 Billionaires...

Gautam Adani is currently on the verge of rejoining the club of the top 21 billionaires in...

The Unified Payments Interface (UPI) has simplified payment processes, but the ongoing effort to streamline procedures continues. Currently, transactions involve scanning QR codes, clicking, and entering a PIN. India’s central bank is now integrating artificial intelligence (AI) into UPI to facilitate conversational payments, aiming to make the payment process more seamless.

UPI

All About the UPI AI Innovation

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, made significant announcements regarding UPI during the Monetary Policy Committee (MPC) meeting, the central bank’s third bi-monthly monetary policy meeting for FY24.

The RBI plans to introduce AI into UPI transactions to enable conversational payments. This approach involves users engaging in conversations with AI-powered systems to initiate payments. Shaktikanta Das stated that this move aims to enhance the digital payment experience by harnessing new technologies.

While the exact functioning of conversational payments is yet to be fully clarified, it’s likely that the RBI will advocate for an AI chatbot similar to ChatGPT, which would simplify the payment process for users. The central bank also announced that this channel will be accessible on both smartphones and feature phones-based UPI channels, thereby contributing to increased digital penetration across the country.

Additionally, Governor Das introduced offline UPI payments using near-field communication (NFC) technology through UPI Lite. UPI Lite was introduced in September 2022 and allows users to make instant payments using on-device wallets without requiring a UPI PIN. With this new development, users can make payments by tapping their smartphones on point-of-sale (PoS) machines.

The RBI also announced an increase in the transaction limit for UPI Lite from ₹200 per transaction to ₹500 per transaction, while maintaining an overall limit of ₹2,000 per instrument. Experts have welcomed these advancements, viewing conversational payments and offline UPI as valuable additions.

Aditya Damani, CEO of Credit Fair, believes that offline payments will enhance customer convenience, while conversational payments through AI have transformative potential. Rajsri Rengan, India Head of Development, Banking and Payments at FIS, sees these developments as pivotal steps with the power to reshape India’s economic landscape and drive financial inclusion to new heights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

━ Related News

Featured

━ Latest News

Featured