India is looking into agentic payments on UPI powered by AI

India is looking into agentic payments on UPI powered by AI

News: An upcoming Indian policy could facilitate AI agents to process micro-transactions directly on UPI without explicit end-user sanction for each. The system aims at a future of frictionless small value payments. Spending caps and Delegated Payment Authorities alongside validation process at merchant end for low value, frequent transactions is envisioned to ensure security and convenience;.

UPI already represents one of the largest real-time payment systems of the world.

As reported by Reuters, by August 2026, as per available reports, UPI churned out 24.51 billion transactions valued at Rs 29.82 lakh crore. This is a significant step in extending the application of artificial intelligence from conversational entities and productivity enhancements to the fin-tech domain. The security of such systems, coupled with user consent and identification of liability are key areas being monitored as a crucial component in the deployment process of AI-enabled payments. With the implementation of such a framework in India, it is expected that this will add on to one of the larger successes in India's pursuit for seamless digital payments.

Category:

Finance 

• Sep 3, 2026
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