Overview
- Reuters and Indian outlets reported Tuesday that the National Payments Corporation of India is preparing a Unified Agent Protocol and plans to unveil it next week at Global Fintech Fest in Mumbai.
- The protocol would let authorised software agents execute low‑value UPI payments without asking users to approve every transaction by using preset rules and merchant integration.
- Design is expected to reuse existing UPI tools such as UPI Circle for delegated authority and Reserve Pay for blocked funds, although current bank caps on blocked funds (about Rs 10,000 for up to 90 days) may be reconsidered for agentic use.
- NPCI sources say the system will include built‑in spending limits, audit trails and identity checks and that a liability framework is planned, but specific limits and how responsibility for fraud will be allocated remain unresolved.
- The move comes as UPI handled 24.51 billion transactions in August and as Mastercard, Visa and fintechs like Pine Labs push rival agentic payments, a development that could speed routine buying but raises open questions about fraud controls and legal responsibility.