India plans rules for AI agents that can make UPI payments on your behalf
The potential introduction of AI agents in India for autonomous UPI payments marks a significant advancement in transaction technology. Users would enjoy the convenience of hands-free purchases while having the ability to establish preset instructions and budget limitations. Proposed safety measures, including identity checks and spending restrictions are currently under consideration, reflecting…
India is considering rules for AI agents that can autonomously make small UPI payments without requiring explicit approval from users, according to Reuters. The proposed Unified Agent Protocol, set to be unveiled at the Global Fintech Fest in Mumbai, would enable users to grant AI agents limited authority to conduct pre-set transactions.
Initially, the focus would be on routine purchases like groceries, which could be facilitated by e-commerce platforms. As the framework evolves, AI agents may identify discounts, place orders, and even make investments based on user-defined parameters. The system would integrate with existing UPI mechanisms such as UPI Circle and Reserve Pay, with merchants able to connect to the platform.
Users can set spending limits, identity checks, and audit trails, while a liability framework will also be established by NPCI. India isn't alone in pursuing agentic payments, as Mastercard and Visa are also developing similar infrastructure. The framework is still in the proposal stage, with final details contingent on NPCI's formal announcement.
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