RBI announces new UPI features Users Will be able to Chat with AI, get NFC support

New Delhi(India), 11/08/23: UPI is India’s preferred digital payment method, is getting a major upgrade with several new features. At the Monetary Policy Committee (MPC) meeting on Thursday, RBI Governor Shaktikanta Das revealed further new features for UPI.

With the purpose of leveraging cutting-edge technology to improve digital payments, NPCI intends to launch ‘Conversational Payments’ on UPI, which will allow users to converse with AI-powered systems to make payments in a safe and secure environment.

According to Das, this capability would work on both smartphones and feature phones, helping to expand digital penetration in the country. It will first be available in Hindi and English, with additional Indian languages to follow. The RBI will issue directions to NPCI soon.

In addition, the RBI has proposed raising the per transaction limit for UPI Lite to Rs 500 from Rs 200 in offline mode. For small value digital payments in offline mode, including National Common Mobility Card (NCMC) and UPI Lite, the RBI has currently set a limit of Rs 200 per transaction and Rs 2,000 per payment instrument.

This channel provides faster, more reliable, and contactless payments for small-value transactions and transit payments because it does not require two-factor verification.

Das said, “There have been demands for enhancing these limits. To encourage wider adoption of this mode of payments and bring in more use cases into this mode, it is now proposed to increase the per transaction limit to Rs 500.”

To mitigate the dangers associated with relaxing two-factor authentication, the overall maximum remains at Rs 2,000. The RBI will provide directions on this as well, he said.

Das has also announced offline UPI payments using UPI Lite, which use near-field communication (NFC) technology. Users will be able to make payments more easily because they will simply need to tap their smartphone on the point-of-sale (PoS) system.

The statement released by MPC and quoted by Indian Express states, “To promote the use of UPI-Lite, it is proposed to facilitate offline transactions using NFC technology. This feature will not only enable retail digital payments in situations where internet or telecom connectivity is weak or not available, it will also ensure speed, with minimal transaction decline.”