India Prepares Agentic Payments on UPI to Enable AI‑Driven Transactions

Prime Minister Narendra Modi praised UPI as a catalyst for digital payments and urged the fintech sector to look beyond the current system toward next‑generation innovations, highlighting its role in India’s rapid economic growth.

Fintech Industry is preparing to launch “agentic payments” on the UPI platform, a feature that would let AI‑driven software initiate transactions on behalf of users, streamlining recurring bills and e‑commerce purchases.

AI Agents could soon make UPI payments automatically, with guidelines expected to define permissible use cases, security checks, and user consent mechanisms to prevent fraud and ensure compliance with existing payment regulations.

Regulatory Bodies such as the National Payments Corporation of India are reviewing the framework for agentic payments, coordinating with the Securities and Exchange Board of India’s new Demat 2.0 system to enable instant settlement while safeguarding consumer data.