NPCI Plans AI Integration to Boost UPI Growth and Security

By: Harsh Vardhan

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Updated on: 29-Jun-2026 03:00 PM

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The National Payments Corporation of India (NPCI) is preparing to use artificial intelligence (AI) to drive the next phase of Unified Payments Interface (UPI) growth. NPCI CEO Dilip Asbe outlined these plans as UPI continues to expand across India, now processing over 750 million transactions daily. NPCI aims to push this figure beyond one billion transactions each day.

Key Highlights

• NPCI plans to use AI to expand UPI's user base and simplify onboarding.
• AI tools will help enhance transaction security and detect fraud in UPI payments.
• UPI processes over 750 million daily transactions with a target of one billion per day.
• RBI proposes mandatory AI kill switch and human oversight for financial institutions.
• NPCI to cap any app's UPI market share at 30 percent by year-end.

AI to Expand UPI User Base

Dilip Asbe stated that AI will play a crucial role in reaching new UPI users. He emphasized the importance of AI-powered voice and multilingual solutions to simplify onboarding. NPCI launched a voice assistant-based interactive system in 2023, but adoption remains limited so far. Asbe believes that voice assistants can make it easier for people to join UPI platforms, especially those less comfortable with digital interfaces.

UPI, launched in April 2016, has become a central part of India's digital payments landscape. NPCI's focus on AI aims to make the platform more accessible and user-friendly for a broader population.

AI for Security and Credit Assessment

Security remains a key concern for digital transactions. Asbe said NPCI plans to use AI tools to enhance safeguards against fraud and detect mule accounts. He stressed the need for effective AI deployment to protect users and identify suspicious activities.

AI could also help automate credit assessment for users and merchants with digital footprints. According to Asbe, automated systems may eventually sanction loans based on user data, streamlining access to credit in the digital economy.

Industry Collaboration and Regulatory Oversight

Asbe encouraged Indian banks, FinTechs, and other ecosystem players to develop small, focused language models using the country's rich data resources. He sees an opportunity for the Indian financial sector to create deterministic AI models tailored to local needs.

These comments come as the Reserve Bank of India (RBI) has issued draft guidelines requiring a kill switch for all AI tools used by banks and financial institutions. The guidelines also call for human oversight in all AI-driven decisions, reflecting growing attention to responsible AI use in finance.

Market Share and Dispute Resolution Updates

UPI's market remains dominated by PhonePe and Google Pay, which together hold over 80 percent market share. NPCI plans to introduce a cap by the end of the year, limiting any app's market share to 30 percent. NPCI's own BHIM UPI app currently holds about 1 percent of the market.

NPCI's dispute-resolution model, FIMI, launched last year, now serves over one million users for mandate cancellations. This system aims to streamline dispute handling and improve user experience.