UPI: Introducing Tap & Pay and Chatbot Payment Innovations

Mumbai: The Reserve Bank of India (RBI) has given the green light for card-like features to be incorporated into Unified Payments Interface (UPI) transactions, including convenient options like ‘tap to pay.’ Additionally, the RBI has increased the limits for offline payments made without the need for a PIN. Moreover, banks now have the opportunity to enable UPI for “conversational payments,” enabling users to initiate payments while engaged in conversations with automated bots.

According to RBI Governor Shaktikanta Das, the integration of UPI in the United Arab Emirates (UAE) is expected to be finalized within a few months, and UPI is already operational in Singapore.

Furthermore, discussions are in progress with several other countries, including advanced economies, to establish connections with the UPI payment system, reflecting their keen interest in this innovative approach.

RBI Deputy Governor T Rabi Sankar revealed that Japan has expressed its interest in integrating with the UPI system, and negotiations are underway with the international arm of the National Payments Corporation of India (NPCI).The introduction of conversational payment features aims to enhance digital accessibility by catering to both smartphone users and those relying on feature phone-based UPI channels.

The feature will initially be available in Hindi and English, with plans to expand to other languages, emphasizing the RBI’s commitment to inclusivity.

The UPI Lite, introduced as an on-device wallet last year, has significantly reduced transaction failures and IT system loads. With over 10 million monthly transactions, UPI Lite has gained popularity.To further encourage the use of UPI Lite, the RBI plans to enable offline transactions using near-field communication (NFC) technology.

This enhancement not only facilitates retail digital payments in areas with weak or no internet/telecom connectivity but also ensures swift transactions with minimal declines.The RBI has also revised the earlier transaction limit of Rs 200 for both UPI Lite and National Common Mobility Cards, allowing transactions to be conducted without requiring two-factor authentication (PIN or OTP). The new limit per transaction has been increased to Rs 500, while the overall limit remains at Rs 2,000, aimed at managing the associated risks with relaxing two-factor authentication.In an effort to streamline the process of low-value farm loan approvals under kisan credit cards, the RBI has decided to offer the digital framework employed by banks as a public tech platform. This step will enable lenders to automate the approval and disbursement of various types of loans.