The National Payments Corporation of India is reportedly preparing to roll out a framework that would allow artificial intelligence agents to execute small-ticket digital payments without requiring explicit user authorization for every transaction. According to the report, the payments body is expected to unveil the “Unified Agent Protocol” next week at the 2026 edition of the Global Fintech Fest in Mumbai. The system aims to leverage existing UPI mechanisms, including UPI Circle and Reserve Pay, to allow users to delegate payment authority to AI agents within a pre-set limit.
UPI Circle currently enables a primary user to authorize family members and other trusted individuals to make payments on their behalf. Reserve Pay, meanwhile, allows users to block funds at one time for multiple future payments. The new protocol appears to combine these features for digital assistants. The initial rollout targets low-value, high-frequency transactions such as grocery orders and routine digital purchases. Over time, NPCI expects AI agents to handle more sophisticated use cases like placing orders automatically based on sales or discounts.
The payments body plans to provide merchants with infrastructure to directly integrate with the protocol. This will enable customers to set rules for AI agents on when and how much to pay. NPCI began piloting an agentic AI framework for UPI last year, marking the next phase of what it calls “intelligent commerce.” The payments body had showcased a live demo of the offering at the Global Fintech Fest 2025.
There is a natural progression here. As digital assistants become more capable, the friction of manual entry slows down the user experience. The system essentially moves the “pay button” from the human hand to the machine’s logic. If an AI agent identifies a coupon code that applies to a cart, the delay of a human click creates a missed opportunity. The protocol attempts to bridge that gap by automating the execution of already-approved logic.
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Besides the agentic AI framework, the NPCI is also likely to announce a few other updates for UPI at the GFF 2026. It is also reported to be announcing interoperability for UPI AutoPay, allowing users to port their existing mandates across UPI apps and merchants to move mandates from one payment provider to another.
AI integration within UPI has been in the works for some time now. In the last edition of GFF, NPCI partnered with Razorpay and OpenAI to launch agentic payments on ChatGPT and explore AI-driven commerce at a national scale. Powered by Razorpay’s banking partners, Axis Bank and Airtel Payments Bank, and built on UPI innovations such as UPI Circle and UPI Reserve Pay, the initiative allows UPI transactions for AI-native shopping.
Delegating authority to a machine requires trust. The protocol relies on pre-set limits to ensure that no single AI agent can drain an account. This approach prioritizes safety while still allowing for automation.
Agentic commerce is becoming a central theme in the digital economy. The framework proposed by NPCI aligns with a broader shift toward autonomous financial systems.
