India plans framework for AI-driven hands-free UPI transactions

India is reportedly preparing a new set of rules, the Unified Agent Protocol, that would let AI agents execute minor UPI transactions without prompting the account holder each time. The proposal, expected to be presented at the Global Fintech Fest in Mumbai, would enable users to pre-authorize AI assistants with specific spending limits and conditions, using current UPI mechanisms such as UPI Circle and Reserve Pay. NPCI is said to be building the backend that allows merchants to connect to the system, while also drafting a liability framework to protect users.

Initial applications could cover routine, low-value purchases such as grocery orders, with future extensions potentially reaching more complex transactions like investment triggers. International payment networks like Mastercard and Visa are also developing similar agent-led commerce capabilities, and Indian fintech firms including Pine Labs have been testing related infrastructure. The final design, limits, and rollout schedule will depend on NPCI’s formal announcement.