India plans rules for AI agents that can make UPI payments on your behalf
India is reportedly developing a framework to allow AI agents to perform small, frequent UPI payments on behalf of users. The system would use pre-set instructions to automate transactions, potentially launching at the Global Fintech Fest.
Why it matters
This represents a significant shift in digital finance, moving toward autonomous, AI-driven consumer transactions that could increase efficiency and change payment habits.
India’s digital payment journey has evolved from passwords, PINs and OTPs to fingerprints and facial authentication, making transactions faster and more seamless. Now, with AI, the next step could be completely hands-free payments, where systems recognise users, assess transactions and authenticate payments almost invisibly.The country may allow AI agents to make small UPI payments without asking the owner every single time, as per a report by Reuters. The proposed framework called the Unified Agent Protocol could be unveiled at the Global Fintech Fest in Mumbai next week, said the sources to the agency.While the proposal has not been formally confirmed by the National Payments Corporation of India (NCPI), if introduced in the reported form, it would allow users to give AI agents limited authority to make payments based on pre-set instructions rather than approving each transaction individually.What could possibly changeInitially, the use cases are expected to focus on small and…
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