India's National Payments Corporation has prepared a framework allowing AI agents to make payments via UPI, sources have told Reuters.
India is preparing to introduce a structure that would allow artificial intelligence agents to complete small digital payments without transaction-by-transaction approval, according to three sources familiar with the matter. The initiative, reported by Reuters, would extend the Unified Payments Interface (UPI) into agentic commerce, positioning the network among the earliest national payment infrastructures to formally support AI-driven transactions.
Early use cases, infrastructure, and liability
According to one of the sources, frequent, low-value purchases such as groceries are likely to be among the first applications, with ecommerce platforms positioned to capture early demand. NPCI expects use cases to grow more complex over time, potentially including AI agents placing orders in response to sale offers and discounts, or executing investment instructions tied to specified price thresholds.
The protocol is expected to build on two existing UPI tools: UPI Circle, which allows a primary account holder to delegate payment authority to a secondary user, including an AI agent, and Reserve Pay, which enables customers to block funds for multiple debits. At the moment, banks are limiting such blocks at USD 105.44 for up to 90 days, though the sources said this limit and its validity period could be modified for agentic use.
It is believed that NPCI will provide an infrastructure that allows merchants to integrate directly, enabling customers to set rule-based instructions governing when and how much AI agents may pay, alongside built-in spending limits, audit trails, and identity verification.
Additionally, the sources stated NPCI also plans to introduce a liability framework, though further details were not disclosed.
Global card networks pursue parallel efforts
Separately, Mastercard and Visa are also developing agentic payment for the Indian market, reflecting a broader push by international card networks to establish infrastructure for AI-driven commerce. According to a company statement, Mastercard completed its first authenticated agentic transaction in New Delhi in June 2026.
Earlier in 2026, Fintech company Pine Labs rolled out P3P, an agentic protocol that allows AI agents to perform UPI payments following a single upfront authorisation.
