The Reserve Bank of India (RBI) monetary policy committee (MPC) has unveiled innovative measures to enhance the digital payments landscape, including the introduction of offline payments via near-field communication (NFC) and the amplification of the payment limit for UPI Lite from Rs 200 to Rs 500. These transformative initiatives underscore RBI's commitment to fostering technological advancements for an improved digital payments journey, while further encouraging the proliferation of digital transactions across the nation.
RBI Governor Shaktikanta Das elaborated on these groundbreaking initiatives, stating, "With the goal of harnessing emerging technologies to enrich the digital payments experience for users, we are introducing three key measures: Conversational Payments on UPI, enabling AI-driven interactions for payment transactions; offline payments on UPI utilising Near Field Communication (NFC) technology via UPI Lite on-device wallet; and enhancing the transaction limit for small value digital payments in offline mode from Rs 200 to Rs 500 within an overarching limit of Rs 2,000 per payment instrument. These strategies will further expand the accessibility and adoption of digital payments in the country."
The introduction of Conversational Payments within UPI represents a stride towards user-centric convenience. This innovation empowers users to initiate and authorise transactions through AI-based natural language interactions, streamlining the payment process and enhancing overall convenience. “Conversational payments on UPI will enable users to engage in conversation with AI systems to make payments,” Das said.
Offline payments via UPI facilitate the initiation of transactions offline, which can be concluded once Internet connectivity is reestablished, thus enhancing the reliability and accessibility of digital payments.
Furthermore, the RBI's commitment to enabling small-value payments offline via UPI presents a compelling proposition. This endeavour is poised to promote digital transactions for minor purchases, bridging the gap in scenarios where internet access is unavailable. This initiative aligns with the overarching goal of reducing reliance on cash and promoting a cashless economy.
The RBI recently concluded its three-day MPC meeting, announcing the unanimous decision to maintain the repo rate at 6.5 per cent — an outcome largely anticipated by financial markets. This decision underscores the central bank's commitment to maintaining stability while proactively fostering advancements in the realm of digital payments and financial innovation.