The Reserve Bank of India (RBI) has unveiled two innovative features for the Unified Payments Interface (UPI), aimed at expediting digital transactions and enhancing customer support. The first of these features, UPI Tap & Pay, enables users possessing NFC-enabled smartphones to make payments at compatible point-of-sale (POS) terminals. This was officially announced by RBI Governor Sanjay Malhotra during the Global Fintech Fest (GFF) 2026 in Mumbai on September 11, 2026.

The UPI Tap & Pay function allows users to complete transactions by simply unlocking their phones and tapping them on the POS machine. Notably, this feature does not require a mobile internet connection for the smartphone, as it can utilise the internet connectivity of the terminal itself, simplifying the payment process at physical stores.

This new functionality will support multiple UPI-linked account types, including the RuPay Credit Card. Additionally, users can enjoy a streamlined payment experience for transactions up to Rs 5,000, which can be completed without inputting a UPI PIN. For transactions exceeding this amount, the user must enter their UPI PIN on the POS device.

MyUPI Revolutionises Customer Support

Alongside the Tap & Pay feature, Malhotra also introduced MyUPI, an AI-supported platform designed to provide enhanced customer service. Powered by NPCI’s Small Language Model, FiMI, MyUPI aims to deliver a comprehensive view of users’ UPI transactions and AutoPay mandates, spanning across various banks and UPI applications.

This platform will introduce several tools focused on improving the safety of transactions and expediting complaint resolution. Notable features include a Safety Switch, which allows users to deny UPI debit transactions if they suspect fraud, and UPI Number Delink, which permits users to unlink their mobile number from receiving UPI payments.

MyUPI will also provide users with Payee Context-based Information, giving additional insights about beneficiaries prior to executing payments. This aims to ensure that users are better informed before confirming transactions, particularly with unknown recipients. Furthermore, MyUPI will facilitate Automated Chargeback Processing for eligible transactions, promoting quicker dispute resolution and enhanced operational efficiency for banks.

Significance of New Features in the UPI Landscape

The two new features address distinct aspects of the UPI payment experience. While UPI Tap & Pay focuses on enhancing the speed and efficiency of payments, particularly in brick-and-mortar establishments, MyUPI concentrates on the pre- and post-transaction phases. This includes offering better information on payees, managing suspected fraudulent transactions, and resolving disputes swiftly.

As UPI continues to evolve and expand its capabilities beyond straightforward bank-to-bank transfers, the introduction of these functionalities indicates a broader move towards an integrated digital payment experience. The advancements encompass a range of aspects, including authentication, credit card payments, automated transactions, and the incorporation of AI-driven support.

The RBI’s latest announcements signify a significant development for UPI users, as they usher in greater convenience and security in the digital payment landscape. These features are expected to be instrumental in enhancing user experience and driving adoption of UPI across diverse transactional scenarios.

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