RBI Governor Introduces AI Capabilities and Enhanced Digital Interface for UPI

In September 2026, Shri Sanjay Malhotra, the governor of the Reserve Bank of India (RBI), unveiled 2 customer-focused innovations at the Global Fintech Fest (GFF) 2026. It includes the introduction of UPI ‘Tap and Pay’ on Point-of-Sale (POS) terminals and MyUPI, which is a customer support feature developed using the Small Language Model (FiMI) of NPCI. Shri Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, NPCI, was also present when these solutions were unveiled, along with other senior bankers, fintech experts, and other people from the banking and fintech environment.

UPI Tap and Pay: This feature has been made accessible at the endpoints to enable users to perform transactions rapidly by unlocking their smartphone, which is compatible with NFC, and tapping it on a Point-of-Sale (POS) terminal, which is also NFC-compatible. This feature eliminates the need for the user to be connected to the internet, as the transaction is performed using the internet connection of the POS machine. It enables secure payments in various kinds of accounts on UPI, even the RuPay Credit Card on UPI. Users do not need to compulsorily use their UPI PIN for transactions below INR 5000.

MyUPI: MyUPI is an AI-based application developed using the Small Language Model (FiMI) of NPIC. It includes a range of smart improvements in UPI Help to build reliability, security, and convenience across the UPI environment. It offers users a centralized point of view of UPI transactions and AutoPay mandates and is compatible with various banks and UPI applications. This platform has the User Controls feature, which enhances security during UPI payments, and the Safety Switch feature to request cancellation of a UPI debit transaction if there is involvement of malicious intent.

Some of the other important features provided by MyUPI include:

• UPI Number Delink: Users can delink their mobile numbers to receive UPI payments.
• Automated Chargeback Processing: It allows real-time chargeback generation for appropriate transactions.
• Transaction Replay: It allows users to perform past transactions again on any UPI application.

These features make MyUPI an application that provides proactive reliability and enhanced control. This platform also offers round-the-clock support in various languages and enables smooth self-service via the simplified interface. It provides excellent transparency, security, and convenience for users and allows banks and UPI applications to offer quick and effective assistance.

Impact on the Information and Communication Technology Industry

According to Precedence Research, the launch of new features in UPI will expand its usage, and it solves some major problems that people in certain situations face. There are many remote regions where, during bad weather, cellular connectivity is very weak; at such times, the Tap and Pay feature will come to the rescue. Various other features that make it easy to navigate the interface and perform transactions will allow people who have less digital exposure to perform UPI payments. These technologies also help government agencies to advance their sustainability goals, as the adoption of digital workflows helps them decrease the production and usage of notes, coins, and financial workflows performed on physical documents.

Impact on the Cybersecurity Market

The global cybersecurity market size was valued at USD 301.91 billion in 2025, calculated at USD 339.96 billion in 2026, and is expected to reach around USD 969.45 billion by 2035. The market is expanding at a solid CAGR of 12.37% over the forecast period 2026 to 2035.

According to Precedence Research, the introduction of new features will create some privacy and security problems that come with digital workflows. Government agencies would have to ensure secure channels for data flow in the Point-of-Sale (POS) terminals. The usage of AI in core processes of the UPI application also mandates the need for certain security measures that allow it to access only authorized data. These requirements might generate a significant demand for development and maintenance of cybersecurity solutions and services.

Impact on the Artificial Intelligence (AI) Market

The global Artificial Intelligence (AI) Market size was USD 757.58 billion in 2025, is calculated at USD 900.00 billion in 2026, and is expected to reach around USD 4,216.29 billion by 2035, expanding at a CAGR of 18.73% from 2026 to 2035.

According to Precedence Research, the launch of new features will boost the small language models segment of the market. These models consume less compute power and are suitable to be used at endpoints with low latency. The increasing usage of AI at endpoints might encourage AI companies to develop more such application-specific small language models. This development represents the expansion of AI beyond central architectures across various applications and endpoints.