11th August 2023 Mumbai: This new feature allows users to initiate payments seamlessly within chat or messaging conversations, transforming routine interactions into instant financial exchanges.
Plans to integrate Artificial Intelligence
In an interesting move, the Reserve Bank of India (RBI) has announced its plans to integrate artificial intelligence (AI) into the realm of digital payments, particularly focusing on the Unified Payments Interface (UPI). The concept, known as “Conversational Payments,” introduces a dynamic and user-friendly approach to transactions. This new feature allows users to initiate payments seamlessly within chat or messaging conversations, transforming routine interactions into instant financial exchanges.
Updates
Other updates include, incorporating offline payments using NFC technology via ‘UPI-Lite‘ on-device wallet; and Elevating the transaction limit for small value digital payments offline, from Rs 200 to Rs 500, while retaining the overall limit of Rs 2000 per payment instrument. These strategic moves are poised to significantly extend and enhance the adoption of digital payments across the nation.
RBI Governor
The RBI’s governor Shaktikanta Das said, “With the objective of harnessing new technologies for enhancing the digital payments experience for users, it is proposed to enable ‘Conversational Payments’ on UPI.” This technology-driven initiative aims to bring unprecedented convenience and efficiency to the payment landscape.
Experts Response
Industry experts have responded positively to the RBI’s announcement. Rahul Jain, Chief Financial Officer (CFO) of NTT DATA Payment Services India, believes that “Conversational Payments” will be a game-changer in the way users conduct transactions. He envisions a revolutionary process where AI, potentially in the form of chatbots, facilitates real-time conversations between users and payment providers, resulting in swift and secure transactions.
Mandar Agashe, Founder and MD of Sarvatra Technologies, applauds the central bank’s proactive measures. Agashe said that the introduction of “Conversational Payments” will further accelerate the adoption of UPI, making digital transactions more accessible and user-friendly for individuals seeking streamlined alternatives.
As the RBI pioneers AI-driven payment solutions, the financial landscape in India is set to undergo a transformation that brings the power of technology to the forefront of everyday transactions.
ASC Priya