RBI explores AI-led digital infrastructure to enhance payments ecosystem

The central bank is focusing on integrating artificial intelligence and APIs into digital public infrastructure to improve customer experience, automate grievance handling, and enable seamless interoperability as India’s digital payments ecosystem continues to expand rapidly.

Reserve Bank of India is working on expanding its digital public infrastructure (DPI) by leveraging artificial intelligence and application programming interfaces (APIs) to strengthen the country’s payments ecosystem and improve user experience. The initiative comes as digital transactions continue to grow at a rapid pace across India.

AI to improve customer experience

Speaking at an industry event, P Vasudevan, executive director of RBI, said the central bank is exploring the use of AI to streamline customer journeys and automate grievance redressal processes. He explained that AI-enabled systems could identify failed transactions and trigger resolution mechanisms automatically, reducing the need for manual intervention.

Such capabilities are expected to enhance efficiency and reduce friction in digital payments, particularly as transaction volumes surge. The central bank believes intelligent systems can help institutions manage rising workloads while delivering faster and more reliable services to users.

Focus on interoperability and innovation

The RBI is also placing emphasis on interoperability between platforms to create a seamless ecosystem. By enabling different systems and databases to interact, the regulator aims to deliver a more integrated and holistic experience for customers.

Vasudevan highlighted that improved interoperability could open opportunities for startups and technology players to develop innovative solutions that enhance user journeys. As India’s digital economy evolves, the RBI’s push toward AI-driven infrastructure is expected to play a key role in shaping the future of payments and financial services.