On August 10th, the Reserve Bank of India unveiled three novel attributes that hold the capability to introduce the forthcoming phase of the payments evolution via the Unified Payments Interface (UPI). These features encompass interactions with an artificial intelligence system for conducting transactions through conversations. Governor Shaktikanta Das announced these measures while sharing the outcome of RBI’s bi-monthly policy review. The central bank held the key repo rate steady at 6.5 percent.
The Reserve Bank of India (RBI) on Thursday announced three new features to enhance the digital payment experience in the country. In a bid to bring more convenience to users, the RBI proposed to increase the per transaction payment limit for UPI Lite in offline mode from Rs 200 to Rs 500. In addition, the central bank introduced Conversational Payments and Near Field Communication (NFC) technologies. This move comes as a bid to promote UPI-Lite, an on-device wallet that was introduced in the year 2020 “to optimize processing resources for banks, thereby reducing transaction failures.”
Currently, the Reserve Bank has set a restriction of Rs 200 per transaction and a cumulative limit of Rs 2,000 per payment instrument for low-value digital transactions conducted in offline mode. This includes transactions made through the National Common Mobility Card (NCMC) and UPI Lite. According to Adelia Castelino, Co-Founder and Managing Director at In-Solutions Global, this is positive step towards accommodating a wider range of daily transactions and encouraging more users to adopt digital payments for their convenience.
According to MoneyControl, Das has proposed to launch Conversational Payments on UPI, enabling users to engage in a conversation with an AI-powered system to initiate and complete transactions in a safe and secure environment. As AI gets increasingly integrated into the digital economy, conversational instructions hold immense potential to enhance the ease of use and reach of the UPI, which has transformed India’s digital payments ecosystem.