Paying through UPI (Unified Payments Interface) has become easier, but the effort to simplify procedures is still ongoing. To pay with conversational UPI, India’s central bank is bringing in artificial intelligence (AI) to make it easier to scan QR codes, click and enter PINs for each transaction.
At the Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das made major announcements regarding UPI.
On Thursday, the governor announced the committee’s decisions at the third bi-monthly monetary policy meeting for FY24.
Conversational payments are now possible with UPI
UPI will soon get artificial intelligence (AI) to make transactions more interesting. Conversational payments involve users interacting with AI-powered systems to make payments.
Users will be able to engage in conversation with AI systems to make payments through conversational payments on UPI, according to RBI governor Shaktikanta Das.
In order to improve the digital payments experience for users, new technologies have been harnessed
Although it is unclear how conversational payments will work, the central bank is likely to push for an AI chatbot like ChatGPT.
According to the central bank, this channel will be available both for smartphones and feature phones based on UPI.
NFC-based offline UPI payments
Through UPI Lite, Das has also announced the introduction of offline UPI payments using near field communication (NFC) technology.
In September 2022, UPI Lite was introduced, enabling users to make instant payments using their on-device wallets without requiring a UPI PIN.
By tapping your smartphone on the point-of-sale (PoS) machine, customers will be able to make payments more easily.
By using NFC technology, offline transactions can be facilitated to promote UPI-Lite. According to the MPC statement, this feature will enable retail digital payments in places where internet or telecom connectivity is weak or unavailable. It will also provide speed, with minimal transaction decline.
Limit increase for UPI Lite
In addition, the central bank has increased the limit on UPI Lite transactions from 200 to 500.
Also Read:
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- By linking UPI-PayNow, the Modi government grabs the India outside the country
- Paytm Payments Bank expands its lead as the largest beneficiary bank for UPI payments, NPCI report shows 20.7% month-on-month growth
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