Payment processes have undoubtedly been simplified by the Unified Payments Interface (UPI), but further process improvement is still sought after. For each transaction, the approach now requires scanning QR codes and entering a PIN. To further improve the convenience of payments made through conversational UPI, the Reserve Bank of India (RBI) is adopting the usage of artificial intelligence (AI).
Shaktikanta Das, governor of the RBI, made key announcements relating to UPI during a recent meeting of the Monetary Policy Committee (MPC). The third of the central bank’s bimonthly monetary policy meetings for FY24 was held, and the outcomes were announced.
A notable finding is that the incorporation of artificial intelligence will cause UPI to undergo a change. The RBI wants to introduce conversational payments to increase engagement in UPI transactions. Users will be able to interface with AI-powered devices to carry out payments with ease thanks to this novel technique.
The RBI Governor said during the meeting that integrating conversational payments into UPI will enable users to communicate with AI systems for processing payments.
Utilizing developing technology to improve users’ digital payment experiences is what motivates this endeavor.
According to Das, because this functionality can be used on both feature phones and smartphones, it will aid in the growth of digital adoption across the country. It will first be available in Hindi and English, with the addition of more Indian languages to follow. The RBI is expected to give instructions to the NPCI soon.
NPCI is likely to press for the addition of an AI chatbot like ChatGPT to assist consumers with payments, even if specifics on how conversational payments will operate are not disclosed.
Das also disclosed plans for offline UPI payments using UPI Lite and near-field communication (NFC) technologies in addition to these improvements. Users will only need to tap their iPhones into point-of-sale (PoS) devices thanks to this invention, which will streamline payments.
“We are proposing to enable offline transactions utilizing NFC technology in order to promote the adoption of UPI-Lite. According to the MPC, this capability would not only enable retail digital payments in situations when internet or telecom access is insufficient or unavailable, but it would also ensure speed and reduce transaction rejections.