Soon, AI will allow you make a UPI payment using voice

  • August 11, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Soon, AI will allow you make a UPI payment using voice

Subject: Science and technology

Section: Awareness in IT 

Context:

The Reserve Bank of India (RBI) is looking to make the United Payments Interface (UPI) more user-friendly by incorporating AI-driven conversational capabilities.

Conversational Payments for Seamless UPI Experience

  • RBI introduces AI-driven conversational feature for UPI transactions.
  • Users can securely initiate and complete payments using voice commands.
  • Aims to improve user-friendliness and accessibility of UPI.

Conversational AI:

  • AI-Powered Interaction: Uses artificial intelligence to engage in natural language conversations with humans.
  • Simulates Human Communication: Mimics human-like responses and understanding of language.
  • Chatbots and Virtual Assistants: Applied in creating chatbots, virtual assistants, and voice-enabled systems.
  • Information and Assistance: Provides information, answers queries, and assists with tasks.
  • Text and Voice Interactions: Works through both written and spoken interactions.
  • Enhanced User Experiences: Improves user engagement and interaction in various applications.

Increased Transaction Limits with Risk Management

  • The transaction limit for offline small-value payments was raised to ₹500.
  • Overall limit at ₹2,000 per payment instrument to balance convenience and security.
  • Focus on maintaining a secure transaction environment.

Multilingual Expansion of Conversational Payments

  • Initial launch in English and Hindi, with plans for more languages.
  • RBI to guide NPCI in implementing multilingual support.
  • Goal is to enhance inclusivity and reach across India.

AI Integration and Real-time Transactions

  • Real-time transactions are facilitated through AI-powered chatbots.
  • Swift, secure, and transparent payment process.

Offline Transactions with NFC Technology

  • RBI’s proposal for NFC-enabled offline UPI transactions.
  • NFC technology enables quick offline payments over short distances.
  • Anticipated rise in UPI-Lite‘s offline transactions.
  • NFC (Near Field Communication) is a close-range wireless technology for secure data exchange between devices, typically within a few centimeters of each other.

Enhanced Limits for Offline Payments

  • Transaction limit for offline payments increased to ₹500.
  • NCMC and UPI Lite facilitate speedy and contactless small payments.
  • Encouraging broader adoption of convenient digital payment methods.

Unified Payments Interface (UPI): Overview

  • Developed by the National Payments Corporation of India (NPCI) for seamless transactions.
  • Enables fund transfers between any two bank accounts using smartphones.
  • Facilitates direct payments to merchants both online and offline, eliminating traditional inputs.
  • Integrates various banking functions, simplifying financial operations.
  • Launched in April 2016, gained immense popularity among users.

Key Features and UPI 2.0

  • UPI 2.0 brought advanced features to the platform.
    • Invoice verification empowers users to validate merchant invoices before payment.
    • One-time mandate feature permits pre-authorized transactions for convenience.
    • Overdraft accounts can now be linked, expanding payment options.
    • QR code authentication enhances transaction security, ensuring authenticity.
  • Cross-Border Payments – Singapore, UAE, Mauritius, Nepal, Bhutan, France.
  • UPI123 PAY – UPI payments over a phone call.

How UPI Works

  • National Payments Corporation of India (NPCI) is UPI’s operational overseer.
  • Users initiate transactions by providing recipient and amount details.
  • Robust authentication verifies user identity and transaction authorization.
  • NPCI processes transactions in real-time for swift fund transfer.
  • The real-time settlement ensures efficient movement of funds between bank accounts.

About National Payments Corporation of India (NPCI)

  • NPCI plays a pivotal role in managing retail payments and settlements.
  • Established through collaboration between the Reserve Bank of India (RBI) and Indian Banks’ Association.
  • Operates under the framework of the Payment and Settlement Systems Act, 2007.
  • Aims to establish a robust payment infrastructure, fostering innovation and efficiency.
AI will allow you make a UPI payment using voice Science and tech