NPCI To Launch Agentic Payments On UPI: Report
UPI operator NPCI is reportedly looking to launch a framework which would see AI agents execute small-ticket digital payments without…
The National Payments Corporation of India (NPCI) is reportedly preparing to introduce a new framework called the 'Unified Agent Protocol' for small-ticket digital payments on UPI without requiring explicit user authorization for each transaction. Reuters is set to reveal the details at the 2026 Global Fintech Fest in Mumbai. This protocol intends to utilize existing UPI mechanisms, including UPI Circle and Reserve Pay, to enable users to entrust payment authority to AI agents within a predefined limit.
The UPI Circle feature allows authorized family members and trusted individuals to make payments on behalf of the primary user, while Reserve Pay enables users to block funds for multiple future payments at once. NPCI has not commented on the matter when contacted for their insights. The initial rollout of the agentic AI framework will focus on low-value, high-frequency transactions like grocery orders and routine digital purchases.
As NPCI envisions, AI agents will eventually be capable of handling more complex use cases, such as automatically placing orders based on sales or discounts.
The payments body plans to offer merchants direct integration with the protocol and allow customers to set rules for AI agents regarding when and how much to pay. NPCI had piloted an agentic AI framework for UPI last year, showcasing a live demo at the Global Fintech Fest 2025. Apart from the agentic AI framework, NPCI may also announce updates for UPI, such as interoperability for UPI AutoPay, which would allow users to transfer existing mandates across UPI apps and merchants.
NPCI has been working on integrating AI within UPI for some time now. At the previous GFF edition, NPCI collaborated with Razorpay and OpenAI to launch agentic payments on ChatGPT and explore AI-driven commerce at a national scale, harnessing UPI innovations like UPI Circle and UPI Reserve Pay. Major global credit card networks Visa and MasterCard are also exploring frameworks for enabling consumers' AI agents to execute transactions on their behalf.
Fintech startups have been actively working on implementing agentic payments in the domestic private sector, with Pine Labs rolling out its own agentic payments protocol, P3P, earlier this year, and Razorpay and Cashfree focusing on products that enable in-chat transactions on AI platforms.
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