The Reserve Bank of India (RBI) has introduced a new suite of digital payment innovations at Global Fintech Festival (GFF) 2025, blending artificial intelligence, Internet of Things (IoT), and credit-linked functionalities.

Unveiled in collaboration with the National Payments Corporation of India (NPCI), these new tools aim to reshape payment experiences by resolving transaction issues using AI, facilitating payments via connected devices, enhancing net-banking ease, and integrating credit options into UPI. Governor Sanjay Malhotra described the launches as marking “a new era of intelligence, interoperability, and inclusivity” within India’s digital payments ecosystem.

AI-Based UPI HELP: Smarter Support, Better Experience

The flagship innovation, AI-based UPI HELP, is an intelligent support system powered by NPCI’s in-house small language model trained on extensive payments data. It enables users to check transaction status, manage mandates, and resolve disputes.

Initially launched in English, the feature is slated to support multiple Indian languages soon. On the backend, it automates complaint handling for banks, reduces repetitive queries, and safeguards user privacy. According to Governor Malhotra, this capability “leverages India’s AI expertise to enhance user trust, convenience, and speed in digital transactions.”

IoT Payments With UPI: Pay Through Smart Devices

Another major launch is IoT Payments with UPI, extending real-time payments to smart devices such as connected cars, wearables, and smart TVs. Authorised users can trigger payments via voice, text, or sensor cues, opening use cases like EV charging, groceries, or entertainment.

This rollout aligns with India’s Digital India vision and aims to cement the country’s position in IoT-integrated financial innovation. NPCI will provide the secure, scalable infrastructure to support transactions from these devices.

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Banking Connect: Interoperable Net Banking Interface

Banking Connect — developed by NPCI Bharat BillPay Limited (NBBL) — brings interoperability to net banking. It simplifies merchant onboarding and settlement processes.

With QR and intent-based options, users can make payments through their bank apps without juggling multiple logins or navigating complex menus. The feature supports mobile-first experiences and advances RBI’s Payments Vision 2025 motto: “E-payments for Everyone, Everywhere, Everytime.”

UPI Reserve Pay: Credit Control Meets Convenience

The fourth innovation is UPI Reserve Pay, which allows users to allocate (or “block”) part of a credit card or pre-approved credit line for recurring or one-time expenses.

This mechanism enhances credit control and transparency across UPI and merchant platforms, smoothing repeat purchases in e-commerce, travel, food delivery, and more.

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The Road Ahead: A Smarter Payment Ecosystem

Taken together, these four launches signal the next generation of India’s fintech journey — fusing AI intelligence, IoT connectivity, and banking interoperability. Governor Malhotra emphasised that these steps reaffirm India’s leadership in building a secure, inclusive, and internationally benchmarked payments infrastructure.

The RBI’s vision is clear: leverage emerging technologies to foster a digitally empowered economy where payments are intelligent, seamless, and universally accessible.