India Moves Toward AI‑Driven UPI Payments With Agent Protocol Pilot

India is evaluating a new AI‑driven protocol for its Unified Payments Interface that would let software agents initiate transfers without the user confirming each transaction, according to sources familiar with the NPCI plan.

NPCI has begun testing the agent protocol on a limited set of merchants, aiming to automate routine bill‑pay and subscription payments while maintaining the existing UPI security framework and fraud‑prevention checks.

RBI data shows digital transactions on UPI have risen sharply, now handling over a billion payments monthly, and officials expect AI‑enabled agents could further reduce cash use and speed settlement times across the economy.

Consumers may soon approve a single consent for recurring AI‑driven payments, similar to a tap‑and‑go feature, which could simplify everyday purchases but also raises questions about oversight and error handling in autonomous transactions.