The Reserve Bank of India has stated that UPI payments would now be processed using artificial intelligence (AI). Payments that are processed over a chat or message exchange are referred to as conversational payments. The two parties who are one acting as the chat operator and the other as the payment provider exchange money.
In making the announcement, the RBI governor stated, “To leverage new technologies for improving the user experience with digital payments, it is proposed to:
(i) Enable “Conversational Payments” on UPI, which will allow users to communicate with AI-powered systems to make payments;
(ii) introduce offline payments on UPI using Near Field Communication (NFC) technology through “UPI-Lite” on-device wallet;
(iii) enhance the transaction l The penetration and use of digital payments in the nation will increase as a result of these measures.
According to the RBI’s development statement, UPI has completely changed India’s digital payment environment thanks to its simplicity, security, and real-time functionality. Numerous additional features that have been added to UPI over time have made it possible to meet the economy’s various payment demands. Conversational instructions have enormous potential to improve the UPI system’s usability and, consequently, its reach as Artificial Intelligence (AI) gets more and more ingrained in the digital economy.
Therefore, it is suggested to provide a cutting-edge payment method called “Conversational Payments” on UPI, which will allow consumers to communicate with an AI-powered system to start and finish transactions in a secure setting. This channel will be made accessible through UPI channels for both smartphones and feature phones, aiding in the country’s increased use of digital technology.
The capability would initially be offered in Hindi and English before being made accessible in more Indian languages in the future. Soon, NPCI will get instructions.
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“The RBI’s announcement on a proposal to introduce ‘Conversational Payments’ through the use of Artificial Intelligence (AI) on the Unified Payments Interface (UPI) platform marks a transformative step for India’s payment ecosystem,” says Rahul Jain, Chief Financial Officer (CFO) of NTT DATA Payment Services India.
With the help of this cutting-edge strategy, clients will soon have access to more easy, transparent, and seamless payment options. Making use of AI’s skills will speed up financial transactions in a secure setting. This not only emphasizes the potential for “Make in India” products to become well-known internationally, especially in countries with a strong focus on technology and where AI is widely used, but it also emphasizes India’s innovative position in the field of digital payments.
