UPI to support AI-powered conversational payments: How it will work
What's the story
The Reserve Bank of India (RBI) is exploring the use of artificial intelligence (AI) for conversational payments on the Unified Payments Interface (UPI).
The central bank has also raised the limit of UPI Lite transactions to Rs. 500. The previous limit was Rs. 200.
The UPI Lite feature uses an on-device wallet instead of a customer's bank to process payments without requiring a PIN.
Details
Conversational payments are expected to enhance UPI experience
"Conversational payments on UPI will enable users to engage in conversation with AI systems to make payments," said RBI Governor Shaktikanta Das.
This means you will interact with an AI-powered system to initiate and complete transactions right from your smartphone.
The National Payments Corporation of India will release more details about conversational payments soon.
The feature will be initially launched in English and Hindi.
What Next?
RBI plans to introduce offline UPI Lite
Increasing the transaction limit on UPI Lite has been a long-standing demand of users. However, the central bank retained the on-device wallet limit of Rs. 2,000.
It has been retained to deal with the risk associated with relaxing two-factor authentication.
To improve the reach of UPI Lite, RBI plans to introduce offline transactions with the help of Near Field Communication (NFC) technology.