India’s premier digital payment system, UPI, is set to undergo a significant transformation. Topping the list of novel introductions is “Conversational Payments,” an innovative method that incorporates AI-driven dialogues for seamless payment processing.
Unveiling Conversational Payments
During the recent Monetary Policy Committee (MPC) session, RBI Governor, Shaktikanta Das, spotlighted the National Payments Corporation of India (NPCI)’s ambitious venture. This next-gen feature, dubbed ‘Conversational Payments’, aims to integrate artificial intelligence, allowing users to converse with intelligent systems to ensure secure payment executions.
Notably, this mechanism won’t be limited to modern smartphones; traditional feature phones will also be on board. Das emphasized the potential boost to India’s digital landscape, mentioning the initial language support in Hindi and English, with subsequent inclusions of other regional languages. Details remain under wraps, but speculation suggests potential collaboration with AI-driven platforms, reminiscent of ChatGPT, to guide users.
Elevated Transaction Thresholds for UPI Lite
RBI is considering an upward revision of the per transaction ceiling for offline UPI Lite payments. Currently pegged at Rs 200, the proposed enhancement aims at a revised Rs 500 per transaction. However, for safety reasons related to bypassing two-factor authentication, the collective cap stays put at Rs 2,000. Governor Das stated that this recalibration responds to a growing demand, aiming to amplify the payment mode’s adoption for smaller transactions.
UPI Goes Offline with NFC
Another groundbreaking announcement from Das pertains to the integration of NFC technology for UPI Lite. With this, users can swiftly execute payments by merely tapping their phones on a Point-of-Sale (PoS) terminal. Ideal for regions with patchy internet or telecom services, this NFC-enabled feature promises speedy transactions with reduced declines.
In conclusion, these upgrades indicate a monumental stride in India’s digital payment ecosystem, with user experience and inclusivity at its core. The nation waits in anticipation for further directives from the RBI on these transformative steps.