The Chief Executive Officer of the National Payments Corporation of India (NPCI), Dilip Asbe, has expressed intentions for artificial intelligence (AI) to significantly influence the next phase of the Unified Payments Interface (UPI). Asbe stated that AI will be leveraged to enhance user acquisition as UPI continues to expand in India. He mentioned to TechCrunch that AI will play a crucial role in all facets of the platform, particularly in efforts to onboard new users.

Asbe elaborated on the potential applications of AI tools, including the utilisation of voice assistants to facilitate the onboarding process for users. His comments suggest a commitment to developing multilingual solutions that would simplify access to UPI services. Despite the launch of a voice assistant-based interactive system in 2023, he acknowledged that user adoption has not yet reached expected levels.

Growth Objectives for UPI Transactions

Since its inception in April 2016, UPI has evolved into a pivotal digital payments framework in India, managing over 750 million transactions daily. NPCI is targeting an ambitious goal of exceeding one billion transactions per day in the foreseeable future. This growth trajectory demonstrates the increasing reliance on UPI within the country’s financial landscape.

According to Asbe, AI could also automate credit provision to users and merchants by analysing their digital behaviours. This utilisation of AI could revolutionise the loan approval process, making it more efficient and accessible. Such advancements in automated systems could aid both consumers and businesses in securing credits more swiftly.

While discussing the challenges associated with online transactions, Asbe underscored the importance of deploying AI tools to enhance fraud prevention measures. He emphasised that NPCI is dedicated to ensuring the safety of digital transactions, stating the need for effective AI integration to safeguard users against fraudulent activities.

AI Model Development in Indian Financial Ecosystem

Asbe further remarked on the prospects of creating tailored AI models for the Indian financial system. He believes that the country’s rich dataset presents an advantageous opportunity for banks and FinTech companies to develop efficient language models. Such models should be designed to provide precise and deterministic outcomes, capable of addressing the unique needs of the Indian market.

His statements coincide with recent draft guidelines issued by the Reserve Bank of India (RBI), which propose mandatory ‘kill switch’ mechanisms for AI applications used by banks and financial institutions. The emphasis on safety reflects a broader trend of ensuring human oversight in AI-decision making processes within the finance sector.

The NPCI’s dispute-resolution model, named FIMI, which was introduced last year, is already assisting over a million users with mandate cancellations. This initiative showcases the organisation’s commitment to improving user experience and service efficacy in the digital payments domain.

UPI Market Landscape

UPI’s market currently remains dominated by two major players: PhonePe and Google Pay, which together account for over 80 per cent of the market share. In response to this concentration, NPCI plans to implement regulations by the end of the year that will cap any single application’s market share at 30 per cent, aiming to encourage healthy competition in the sector. The NPCI’s own BHIM UPI app currently holds around 1 per cent market share.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share