NPCI to Introduce AI-Powered UPI Payments

India’s digital payment ecosystem is preparing for a major upgrade as the National Payments Corporation of India (NPCI) is working on an AI-powered feature that will allow artificial intelligence to perform selected UPI transactions on behalf of users. The upcoming system aims to make digital payments faster, smarter, and more convenient while maintaining strict user control.

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According to reports, NPCI is developing a Unified Agent Protocol (UAP) in collaboration with leading technology companies and industry experts. The protocol will enable AI agents to securely execute recurring payments and low-value transactions after obtaining explicit permission from users.

Unlike fully automated banking, the AI agent will not have unrestricted access to a user’s account. Instead, it will be designed to handle routine and recurring payments, such as tuition fees, electricity bills, mobile postpaid bills, gas cylinder payments, and other fixed monthly expenses based on the user’s payment history.

The objective is to eliminate missed payment deadlines, reduce late payment charges, save users’ time, and help maintain a strong financial record. Every AI-powered transaction will be backed by secure registration, identity verification, and user authorization to ensure safety and trust.

NPCI is currently seeking feedback from technology firms and payment industry stakeholders to build a common protocol that can function efficiently across multiple digital platforms. The proposed system will work alongside the existing UPI infrastructure rather than replacing it.

Officials have clarified that the current UPI payment ecosystem will remain unchanged. The AI agent will simply act as an intelligent assistant for selected low-value payments, ensuring that the existing digital payment infrastructure is not disrupted.

While several payment applications already send reminders for bill payments, the upcoming AI-based feature is expected to go a step further by completing eligible transactions automatically after receiving prior user consent.

The AI-powered UPI payment system is still under development, and NPCI has not yet announced an official rollout timeline. However, if successfully implemented, the Unified Agent Protocol could become a global benchmark for AI-driven digital payment systems and further strengthen UPI’s adoption in international markets.

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