RBI Governor unveils New Generation of Digital Payment Initiatives at GFF 2025
Launch includes
· AI Based UPI HELP – Small Language Model (SLM)
· IoT Payments with UPI
· Banking Connect – Interoperable Net Banking Solution, and
· UPI Reserve Pay
8 October 2025: The Reserve Bank of India (RBI) Governor, Shri Sanjay Malhotra, today announced the launch of four new product offerings at the Global Fintech Festival (GFF) 2025. These are AI based UPI HELP powered by NPCI’s Small Language Model (SLM) providing assistance for payments, mandates, and dispute resolution, IoT Payments with UPI for enabling transactions directly from connected devices such as cars, smart TVs, and wearables, Banking Connect an interoperable net banking solution offering seamless payments and standardized merchant onboarding, and UPI Reserve Pay that will allow users to securely block and manage credit limits for specific purposes across merchant and UPI apps.
The launch took place in the presence of Shri Nandan Nilekani, Co-Founder & Chairman, Infosys and Hon. Advisor to NPCI on Innovations & Public Policy and Shri Ajay Kumar Choudhary, Non-Executive Chairman and Independent Director, NPCI along with senior bankers, fintech founders, and other participants from the banking and fintech ecosystem.
AI based UPI HELP – Small Language Model (SLM)
The RBI Governor announced the launch of AI based UPI HELP, an AI-powered support system designed to transform complaint resolution and mandate management. Developed in-house as a Small Language Model (SLM) trained extensively on payment data, UPI HELP currently supports English, with plans to expand to multiple Indian languages. The platform enables users to check transaction status, raise and track complaints, manage mandates, and provide contextual guidance, improving speed, accuracy, and overall experience. For banks, it streamlines complaint handling, reduces repetitive tickets and with privacy safeguards.
UPI HELP reinforces customer trust using AI-driven innovation, giving citizens secure and easy access to financial services. It reflects India’s growing leadership in using AI and technology for inclusive and impactful growth.
IoT Payments with UPI
The RBI Governor announced IoT Payments with UPI, extending India’s digital payments system beyond smartphones to a wide range of connected devices and intelligent software, reshaping possibilities across mobility, retail, and households adding significant convenience to customers.
Enabled by user-authorized IoTs capable of initiating UPI payments based on contextual triggers, routines, voice, or text instructions, operating across devices or cloud environments within user-defined limits. Users can make instant payments for services like fuel, EV charging, or other services via connected cars, smart glasses, or smart TVs, making transactions faster, smarter, and frictionless.
Aligned with the vision of Digital India this launch positions India at the forefront of real-time global payment solutions, with NPCI delivering secure, scalable, and future-ready IoT-enabled payment rails and frameworks.
Banking Connect – Interoperable Net Banking Solution
The RBI Governor announced the launch of Banking Connect, an interoperable net banking solution developed by NPCI Bharat BillPay Limited (NBBL). This launch brings to life RBI’s Payments Vision 2025 of enabling “E-payments for Everyone, Everywhere, Everytime,” by extending interoperability to internet and mobile banking transactions. The platform addresses long-standing net banking challenges, including cumbersome navigation, fragmented integrations, and inconsistent merchant onboarding, settlement, and dispute resolution processes. By removing these hurdles, customers can transact with greater ease and speed across online merchants using own Bank app.
Banking Connect offers two mobile-first payment options – QR and Intent, ensuring a seamless customer experience. It enables interoperability between banks and Payment Aggregators (PAs), eliminating the need for multiple one-to-one setups. With a single integration, PAs gain immediate access to all participating banks. For merchants, this platform streamlines settlement, reconciliation, and dispute resolution.
NBBL has collaborated with Banks and PAs to co-create a secure, convenient, and standard net banking experience for both consumers and merchants. Banking Connect marks another milestone in India’s journey towards a fully inclusive and interoperable digital payments ecosystem.
UPI Reserve Pay – Single Block Multiple Debt (UPI SBMD) on Credit Accounts
The RBI Governor announced the launch of UPI Reserve Pay to enable users to set aside (or “block”) a part of your credit card/pre sanctioned credit line limit to simplify repeat purchases across e-commerce platforms, food delivery apps, and cab aggregators by creating a seamless, native UPI experience. Customers gain complete transparency with a clear view of both blocked and utilized credit across merchant apps, UPI applications, and issuer platforms.
By combining transparency, security, and convenience, UPI Reserve Pay on Credit enhances trust in online commerce and empowers customers with greater convenience, control and flexibility in managing their digital payments.
Together, these launches reaffirm India’s commitment to building a secure, inclusive digital economy. With NPCI driving innovation under a progressive regulatory vision, they showcase the nation’s leadership in deploying future-ready, interoperable payment technologies that empower citizens and businesses alike.
Links:
1. UPI Reserve Pay – https://youtu.be/KYKc0OrKSXI
2. IoT Payments with UPI
a. For Car – https://youtu.be/cKJIWr7nNjU
b. For smart glasses – https://youtu.be/4aK6vafU1Pw
c. For Television: https://youtu.be/vme7yGz2WaE
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About NPCI:
National Payments Corporation of India (NPCI) is the umbrella entity responsible for operating retail payments and settlement systems in India. It is established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA). The Company is focused on bringing innovations in the retail payment systems by using technology for achieving greater efficiency in operations and widening the reach of payment systems. NPCI is committed to harnessing the transformative potential of deep tech, creating an ecosystem that fosters collaboration to work on breakthrough technologies. Underlining its commitment to service, NPCI has been incorporated as a “Not for Profit” Company to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.
NPCI has made a profound impact on India’s retail payment landscape, focusing on creating robust, efficient, and inclusive payment and settlement solutions. NPCI has been instrumental in introducing a range of products that have revolutionised retail payment systems. These include Unified Payments Interface (UPI), RuPay, National Automated Clearing House (NACH), Immediate Payment Service (IMPS), National Electronic Toll Collection (NETC), Aadhaar Enabled Payment System (AePS), e-RUPI and more. Each of these products has contributed significantly to enhance the efficiency and accessibility of payment systems in India, ultimately propelling financial inclusion.
NPCI has played a fundamental role in establishing the foundation for India’s rapidly growing digital payments ecosystem, projecting the country onto the global stage.
NPCI has three wholly owned subsidiaries – NPCI International Payments Limited (NIPL) and NPCI Bharat BillPay Limited (NBBL) and NPCI BHIM Services Limited (NBSL), established in pursuance of NPCI Board & RBI approval.
For more information visit: https://www.npci.org.in/
About NPCI Bharat BillPay Limited:
NPCI Bharat BillPay Limited (NBBL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), is at the forefront of digital payments and collections, driving financial inclusion and enhancing customer convenience. NBBL offers a unified, interoperable, and accessible ecosystem for bill payments and collections, enabling secure and reliable “Anytime, Anywhere” transactions for individuals and businesses.
Through its Bharat Connect (BBPS) platform, NBBL caters to individual users with seamless bill payment solutions across diverse categories. For B2B, it provides ERP interoperability, streamlined collections, invoice management, reconciliation, and access to structured financing options. Developed by NBBL, Banking Connect is a net banking solution that enables interoperability between banks and payment aggregators, allowing customers to transact with greater ease and speed across merchants through banks. It is also designated settlement agency for the Open Network for Digital Commerce (ONDC), ensuring safe, secure, and reliable settlements on the platform.
