The Reserve Bank of India has recently announced new features for UPI enhancement. Today, more than 260 million users are actively using the Unified Payment System in India. From the smallest vendors to the largest showrooms, every business accepts UPI. The current government is actively bringing reforms to improve the digital payment system in India. Here are the new features announced by RBI for UPI enhancement:
Conversational Payments with Artificial Intelligence
The increasing penetration of Artificial Intelligence in mobile apps is bringing convenience for the users. Users can now initiate and engage in secure payments through AI-based conversations. The feature is accessible in Hindi and English languages. In the coming future, the feature will add more Indian languages, making AI-powered chatbots diverse in language usage.
Higher UPI Rate Limit
For small transactions, the government launched UPI Lite transactions some time ago. The limit for using UPI Lite transactions was Rs 200; however, RBI has now increased it to Rs 500. This move will ensure faster contactless payments for small-value transactions and will also ensure broader adoption of UPI payments.
Offline UPI Payments using NFC
Users do not need an internet connection to perform UPI payments. Since Near-Field Communication technology is broadening its roots, users can use it to transfer money offline through UPI. This move brings a solution for internet telecom connectivity issues and transaction failures, ensuring speedy transactions. The failure rate of UPI payments is nearly 3% and we will reduce that too in the coming future.
Positive Impact and Reactions
With this move, the RBI ensures positive impacts on the economy and meets public expectations. The announced features will fuel digitization in remote areas, bringing faster transformation towards a digital economy. The offline payment mode will ensure rural areas can easily use UPI payments and AI-powered voice assistants in case of a lack of education. As the transaction limit increases, the people of India will have more power in handling micro transactions.
Democratizing Financial Services
Not only economic impacts, but the latest announcements also enhance and ensure democratic principles. With better financial services and payment ease, Indian democracy will increase accessibility in the digital payment department and Democratize financial services.
We are the largest democratic country in the world and we are close to reaching one of the strongest digital payment systems. This announcement meets the right expectations and sets higher standards for financial services.