AI agents may soon be able to make UPI payments for users: How it may work
India is preparing a framework for artificial intelligence agents to make UPI payments. This new system will allow AI agents to transact without requiring human approval for every purchase. The proposed Unified Agent Protocol aims to create a common system for AI agent authorization. Low-value, frequent purchases like groceries are expected to be among the first use cases. This move positions…
India is reportedly preparing a framework to allow AI agents to make UPI payments on behalf of users, potentially making UPI one of the world's largest networks built for agentic payments. This proposed Unified Agent Protocol (UAP) would create a common, interoperable system for registering, verifying, and authorising AI agents that transact through UPI.
The protocol is expected to draw on existing UPI mechanisms like UPI Circle and Reserve Pay, allowing users to grant AI agents defined authority such as a spending cap or restrictions on transaction type. Low-value, frequent purchases like groceries are likely to be among the first use cases, with e-commerce platforms well placed to capture early demand.
The system is expected to include spending limits, audit trails, identity checks, and a liability framework to ensure transactions are verified as authorised and agents confirmed as legitimate.
Brief written by urgent.news from Times of India's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
