NPCI is reportedly developing the Unified Agent Protocol (UAP) to enable AI agents to make UPI transactions on behalf of users without altering the existing payments infrastructure.
The framework will authenticate and authorise AI agents, define transaction permissions and preserve UPI's interoperability as agentic commerce gains traction.
India's initiative comes as companies including Visa, Google and OpenAI develop similar protocols for AI-enabled commerce, with everyday purchases expected to be among the first automated use cases.
India Plans AI-Powered UPI Payments Framework Through Unified Agent Protocol
NPCI is reportedly developing a Unified Agent Protocol to enable AI assistants to securely make UPI payments on behalf of users while preserving interoperability and trust
Summary
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India is developing a new digital payments framework that would allow artificial intelligence (AI) agents to make transactions on behalf of users through the Unified Payments Interface (UPI), according to a report by Business Standard.
The proposed Unified Agent Protocol (UAP) is being developed by the National Payments Corporation of India (NPCI) in consultation with industry stakeholders. If rolled out, it could position India among the first countries to create national infrastructure for AI-led, or "agentic", payments.
What Is the Unified Agent Protocol?
The UAP aims to create a common, interoperable framework that enables AI agents to be registered, verified and authorised to transact across the UPI ecosystem without changing the underlying payment rails.
While UPI's existing trust architecture is designed around human users and their devices, the rise of AI agents capable of shopping, booking services and making purchases independently requires a new layer of authentication.
The protocol would verify whether an AI agent is authorised to act on behalf of a user, define the limits of that authority and establish accountability.
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According to the report, NPCI's role would remain limited to validating whether a payment request is genuine, similar to the current UPI system, without visibility into what is being purchased.
Everyday Purchases Could Lead Adoption
AI agents could originate from merchant apps, payment platforms, AI assistants such as ChatGPT and Claude, or dedicated agentic platforms.
A senior executive at a digital payments company told Business Standard that low-value, repetitive purchases—such as groceries, dairy products and other daily essentials—are likely to be the first use cases for agentic payments. This could create new opportunities for quick-commerce platforms.
The protocol is also intended to preserve interoperability across the UPI ecosystem, allowing AI-powered transactions to scale without requiring separate trust arrangements between banks, merchants and technology providers.
Part of a Global Trend
India's efforts mirror a broader global push towards AI-enabled commerce. Similar initiatives are being developed by companies including Visa, Google, OpenAI and Pine Labs.
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Industry participants also believe consumer protection mechanisms such as chargebacks and dispute resolution will need to evolve alongside AI-led transactions.
The initiative builds on UPI's rapid growth. In June 2026, the platform processed 22.71 billion transactions worth ₹28.92 trillion, with 63.5% of them comprising peer-to-merchant (P2M) payments.
As AI assistants become more capable of making purchasing decisions, the proposed UAP could form the backbone of the next generation of digital payments in India.