The Reserve Bank of India (RBI) unveiled conversational payments for the UPI system, enabling users to interact with an AI-driven system using natural language, simplifying transaction initiation and completion.
Enhancing Digital Transactions: RBI’s Expansion of UPI and NPCI’s Innovative Step
In the announcement of the bi-monthly monetary policy, RBI Governor Shaktikanta Das mentioned that this functionality will be available on UPI platforms for both smartphones and feature phones, enhancing accessibility and digital adoption. The initial launch will support Hindi and English, with plans to extend to other Indian languages, ensuring a more inclusive user base.
The NPCI, the primary driver of UPI, is expected to issue instructions for introducing Conversational Payments soon. This move is anticipated to transform the user experience, making digital transactions even more seamless and user-friendly.
The Roles of RBI and NPCI in India’s Financial Landscape
Reserve Bank of India or RBI is the central bank of India, responsible for regulating the country’s monetary and financial system. The RBI plays a crucial role in issuing and managing the Indian rupee, controlling inflation, overseeing the banking sector, and implementing monetary policy to maintain stability and promote economic growth in India. It also acts as the government’s banker and conducts various functions to ensure the overall health of the Indian financial system.
NPCI or National Payments Corporation of India is a government-owned organization in India that serves as a central infrastructure for various retail payment systems in the country. NPCI was established with the goal of promoting digital payments and modernizing the payment ecosystem in India.
It designs and operates payment systems like Unified Payments Interface (UPI), Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT), and other digital payment platforms. NPCI plays a crucial role in facilitating secure, efficient, and convenient electronic transactions across India, contributing to the growth of digital financial services in the country.
