RBI announces AI-powered UPI payment features
Recently Reserve Bank of India (RBI) has introduced several features to further digital payments through Unified Payments Interface (UPI).
UPI integrates multiple bank accounts (partner banks) into a single mobile application and provides access to certain fixed banking services. It has been developed by National Payments Corporation of India.
Key Features of UPI:
- Through this, both person-to-person (P2P) and person-to-merchant (P2M) payments can be made.
- It provides the facility of instant transfer of funds, bill-sharing facility etc.
New features introduced:
- Conversational Payments: RBI enables users on UPI to engage in dialogue with AI-powered systems (audio interaction with AI bots) to initiate and complete secure transactions. This innovative mode aims to enhance ease of use and expand the reach of UPI. The use of UPI-Lite is being promoted by increasing the per transaction limit from Rs.200 to Rs.500 for low value digital payments.
- Offline transactions with NFC: RBI proposes to enable offline transactions using Near Field Communication (NFC) technology.
- Increase in transaction limit for small value payments: The transaction limit for small value offline digital payments will be increased to ₹ The overall limit of ₹2,000 will remain in place to mitigate the risks. This adjustment facilitates faster, more reliable and contactless payments for everyday small value transactions.
- Scale-up of UPI-Lite: The UPI-Lite wallet launched by RBI with an aim to optimize processing resources for banks now processes over 10 million transactions per month, thereby increasing the reliability of transactions.
UPI-Lite is an on-device wallet service. It enables low value transactions in real time without using the core banking system of the remitter bank.
Source – Live Mint