Mumbai:RBI is working on "conversational payments" which will enable users to engage in a conversation with an Artificial Intelligence-powered system to initiate and complete transactions in a safe and secure environment, the top boss of India's central bank said.
While briefing the media after the Monetary Policy Meeting, the RBI Governor Shaktikanta Das presented a statement on the development and regulatory policy measures of the country's central bank. The statement has set out various developmental and regulatory policy measures relating to Financial Markets; Regulation and Supervision; Payment Systems; and FinTech.
UPI, with its ease of usage, safety and security, and real-time feature, has transformed the digital payment ecosystem in India. Addition of many new features over time have enabled UPI to facilitate diverse payment needs of the economy, the statement read.
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As Artificial Intelligence (AI) is becoming increasingly integrated into the digital economy, conversational instructions hold immense potential in enhancing ease of use, and consequently reach, of the UPI system, the RBI governor said.
It is, therefore, proposed to launch an innovative payment mode viz., “Conversational Payments” on UPI, that will enable users to engage in a conversation with an AI-powered system to initiate and complete transactions in a safe and secure environment, the RBI said.
This channel will be made available in both smartphones and feature phones-based UPI channels, thereby helping in the deepening of digital penetration in the country. The facility will, initially, be available in Hindi and English and will subsequently be made available in more Indian languages. Instructions to NPCI will be issued shortly, the statement said.
NFC (Tap & Pay) Based Payments with UPI-On-device wallet called “UPI-Lite”, launched in Sept. 2022 to optimise processing resources for banks, and reducing transaction failures, will now use the Near Field 4 Communication (NFC) technology, the RBI said.
At present, the product processes more than ten million transactions a month. To promote the use of UPI-Lite further, RBI will facilitate offline transaction using the NFC technology. This feature will not only enable retail digital payments in situations where internet / telecom connectivity is weak or not available, it will also ensure speed, with minimal transaction declines.
Lower limit revised to Rs 500 from Rs 200 for offline mode-A limit of ₹200 per transaction and an overall limit of ₹2000 per payment instrument has prescribed by the RBI for small value digital payments in offline mode including for National Common Mobility Card (NCMC) and UPI Lite has been revised to Rs 500 for lower limit while the overall limit will remain unchanged.
In the absence of two-factor authentication for small value transactions, these channels enable faster, reliable, and contactless mode of payments for everyday small value payments, transit payments etc, the statement said. The revision has been effected following demands for enhancing these limits and will encourage wider adoption of this mode of payments and bring in more use cases into this mode.
The overall limit is, however, retained at ₹2000 to contain the risks associated with relaxation of two-factor authentication, the RBI reasoned.
