The Reserve Bank of India has set out plans for the development of AI-powered “conversational” payments on the country’s UPI system.
The feature is set to offer a public digital platform for the provision of frictionless credit.
The central bank has identified AI’s potential to enable conversational payments, letting users engage in a conversation with an AI-powered system to initiate and complete transactions.
The platform will be made available in both smartphone and feature phone-based UPI channels, initially in Hindi and English.
RBI is also working to address the fact that the data required for credit appraisal is available with different entities in separate systems, hindering frictionless and timely delivery.
As it attempts to broaden financial inclusion, RBI is also working on offline payments in UPI.
The bank launched an on-device wallet called UPI-Lite last year, and is now set to facilitate offline transaction using NFC technology.
The product has gained traction and currently processes over ten million transactions a month.
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