New Delhi: India is preparing to introduce a framework that would allow artificial intelligence agents to make small digital payments through the Unified Payments Interface without requiring users to approve every transaction, according to three sources familiar with the matter.
The planned system could make UPI one of the world’s largest networks to support agentic payments, placing India among the first countries to develop national infrastructure for AI-driven transactions. Payment companies in the United States, Europe, Singapore and Australia are already developing similar systems.
UPI, operated by the National Payments Corporation of India (NPCI), is the world’s largest retail fast-payment system by transaction volume, according to a 2025 International Monetary Fund report.
The platform processed 24.51 billion transactions worth 29.82 trillion Indian rupees in August, with Google Pay and Walmart-owned PhonePe accounting for around three-fourths of monthly transaction volumes.
The sources said NPCI is likely to unveil the Unified Agent Protocol at the Global Fintech Fest in Mumbai next week. The framework is expected to initially focus on frequent, low-value purchases such as groceries, with e-commerce platforms potentially among the first businesses to adopt the technology.
Over time, AI agents could handle more complex transactions based on instructions provided by users. For example, an agent could automatically place an order when a product reaches a specified discount or make an investment when a particular price threshold is met.
The proposed system is expected to build on existing UPI mechanisms, including UPI Circle, which allows a primary account holder to delegate payment authority to another user, and Reserve Pay, which enables customers to set aside funds for multiple debits. Banks currently allow blocks of up to 10,000 Indian rupees for up to 90 days, although these limits could be reviewed for agentic payments.
NPCI is also expected to provide infrastructure that allows merchants to integrate directly with the system. Users could set rules determining when an AI agent can make payments and how much can be spent, with safeguards including spending limits, audit trails and identity checks.
A liability framework is also expected to be introduced, although details have not yet been disclosed. The safeguards will be important as AI agents gain greater authority to make payments without requiring individual approval for every transaction.
Global payment networks Mastercard and Visa are separately developing agentic payment capabilities in India as the financial industry prepares for AI-driven commerce. Mastercard completed its first authenticated agentic transaction in New Delhi in June, while Indian fintech company Pine Labs launched its P3P agentic protocol earlier this year, allowing AI agents to complete UPI payments following a single upfront authorization.
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