Shaktikanta Das, governor of the Reserve Bank of India (RBI), revealed on Thursday that the monetary policy committee had kept the repo rate unchanged and that the central bank had proposed using conversational payments on the unified payments interface (UPI) through artificial intelligence.
In his proposal, Governor Das suggested introducing Conversational Payments on UPI, which is a cutting-edge payment method that will let users interact in a conversation with an AI-powered system to initiate and complete transactions in a safe and secure environment.
The RBI stated that conversational instructions hold immense potential in enhancing ease of use, and consequently reach, of the UPI system in a report titled “Statement on Development and Regulatory Policies,” which was released at the time of announcement of the monetary policy.
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According to the central bank, this channel will be made available through smartphones and feature phones-based UPI channels. This will help in the deepening of digital penetration in the country.
The conversational UPI payment option will be initially made accessible in Hindi and English before being made available in additional Indian languages, the central bank governor stated, adding that instructions to NPCI will be issued shortly.
Additionally, the RBI advocated employing Near Field Communication (NFC) technology to make offline transactions easier in order to support the implementation of UPI-Lite, which was released in September 2022.
