RBI

Conversational payments and options for offline UPI payments were set up by the RBI

A critical step that would transform India's economic trajectory was taken on Thursday with the announcement by the Reserve Bank of India on the addition of conversational payments and offline capability to UPI Lite. The central bank increased the UPI light payment cap from ₹200 to ₹500.

"To leverage new technologies for improving the user experience with digital payments, it is proposed to (i) enable "Conversational Payments" on UPI, which will allow users to communicate with AI-powered systems to make payments; (ii) introduce offline payments on UPI using Near Field Communication (NFC) technology through "UPI-Lite" on-device wallet; and (iii) increase the transaction limit for small value digital payments in offline mode. According to RBI Governor Shaktikanta Das, these efforts would broaden the country's adoption of digital payments.

It's a big idea to use UPI to create conversational payments. With natural language interactions, users can initiate and approve transactions, making the payment process simpler and more comfortable.

According to Suren Goyal, partner at RPS Group, the inclusion of offline payments to UPI is a crucial feature. This functionality aims to enable perfect transactions even in locations with limited or erratic internet access. The accessibility and dependability of digital payments would be increased since it would guarantee that clients may start payments while internet connectivity is down and finish them once it is operational.

In addition, the Reserve Bank of India wants to make it possible for UPI to be used offline for modest payments. The goal of this method is to encourage digital transactions for minor purchases even when customers lack an internet connection. He said this plan furthers the overarching goal of reducing reliance on currency and fostering a cashless society.

"The addition of conversational payments can improve transactional ease and boost the user experience overall. In addition, near-field technology for offline payments solves connection issues, guaranteeing smooth transactions even in places with spotty network coverage. In addition to streamlining transactions, this measure ushers in a new age of accessibility and convenience for people and companies, according to Rajsri Rengan, India Head of Development, Banking and Payments, at FIS.

The Reserve Bank of India unanimously opted to maintain the repo rate at 6.5 percent at its three-day monetary policy committee meeting, which was what most financial markets had anticipated.