You may soon be able to make UPI payments by talking or just tapping phone
New Delhi, Aug 10, 2023
RBI governor Shaktikanta Das in the MPC decision announcement on Thursday, proposed to enable 'conversational' payments on UPI using AI
While announcing the monetary policy committee's decision to keep the repo rate unchanged, the governor of the Reserve Bank of India (RBI), Shaktikanta Das, proposed to enable "Conversational Payments" on UPI.
Das said this would enable users to converse with artificial intelligence (AI)-powered systems to make payments.
Later, the RBI also released a "Statement on Development and Regulatory Policies," providing more details on the proposal.
"As artificial intelligence (AI) is becoming increasingly integrated into the digital economy, conversational instructions hold immense potential in enhancing the ease of use, and consequently reach, of the UPI system," the statement read.
It added that the feature would be available in both smartphone and feature phone-based UPI channels.
It will initially be made available in Hindi and English and will be made available in more Indian languages.
"Instructions to NPCI will be issued shortly," it said.
UPI payments using NFC technology
Additionally, Das also proposed to introduce offline payments on UPI using Near Field Communication (NFC) technology through the "UPI-Lite" on-device wallet.
"This feature will not only enable retail digital payments in situations where internet/telecom connectivity is weak or not available, but it will also ensure speed, with minimal transaction declines," the statement released later said.
What is NFC technology?
NFC technology allows two devices — like a phone and a payment terminal — to talk to each other when they're placed close to each other. It enables contactless payments.
RBI MPC: Repo rate unchanged, CIP inflation projection raised
The RBI MPC unanimously kept the repo rate unchanged for the third straight time at 6.5 per cent. It, however, signalled that the committee will be ready to act should food prices drive inflation higher.
With a vote of 5-1, RBI MPC also retained a policy stance focused on "withdrawal of accommodation". It was introduced in April last year.
The central bank raised its inflation forecast to 5.4 per cent for the year ending in March, from 5.1 per cent in its last review. It retained a 6.5 per cent real GDP growth target in the current financial year.
"Headwinds from weak global demand, volatility in global financial markets, geopolitical tensions and geoeconomic fragmentation, however, pose risks to the outlook," Das said.
On inflation, Das said the spike in vegetable prices, led by tomatoes, would exert upside pressures on the near-term headline inflation trajectory.
"This jump is, however, likely to correct with fresh market arrivals," he said. He also added that there has been significant improvement in the progress of the monsoon and kharif sowing in July.
[The Business Standard]
