The new initiatives aim to simplify everyday transactions, strengthen payment safety and give users greater control, while enabling contactless UPI payments at compatible terminals even when mobile data is unavailable.
The Reserve Bank of India (RBI) has introduced two new initiatives to make UPI payments more convenient while giving users greater control over their digital transactions. The new features include UPI Tap-and-Pay, which enables contactless payments through NFC-enabled smartphones, and MyUPI, an AI-powered customer support platform developed by the National Payments Corporation of India (NPCI).
RBI Governor Sanjay Malhotra announced the initiatives on September 10 as part of efforts to simplify the digital payment experience and strengthen safety and customer assistance.
UPI Tap-and-Pay is particularly aimed at payments made at physical stores. It allows users with NFC-enabled smartphones to unlock their devices and tap them against a compatible point-of-sale (POS) terminal to complete a UPI transaction.
Importantly, the feature does not mean that UPI payments can function entirely without internet connectivity. Instead, the customer's smartphone does not require mobile internet for the transaction, as the payment can use the internet connection available through the POS terminal.
Tap-and-Pay brings contactless payments to UPI
The new facility is designed to offer an experience similar to contactless card payments. Users can make a payment by tapping their NFC-enabled smartphone on a supported POS terminal, potentially making UPI more useful in situations where mobile data is unavailable.
The facility supports various UPI-linked payment options, including RuPay credit cards linked to UPI. For transactions of up to Rs 5,000, users can complete payments without entering a UPI PIN. Transactions above Rs 5,000 will require PIN authentication on the POS terminal.
This could make digital payments more convenient in retail environments, particularly where customers have limited mobile connectivity.
MyUPI adds AI-powered support and payment controls
Alongside Tap-and-Pay, the RBI has introduced MyUPI, an AI-based customer support platform developed by NPCI. The service is powered by NPCI's FiMI Small Language Model and is designed to bring information related to UPI transactions and AutoPay mandates together across banks and UPI applications.
MyUPI includes a Safety Switch, through which users can request that UPI debit transactions be declined if they suspect their account has been compromised. Another feature, UPI Number Delink, allows users to stop receiving UPI payments through their mobile number.
The platform will also provide additional beneficiary information before a payment is completed. For eligible transactions, it will support automated chargeback processing. Its Transaction Replay feature will allow users to retrieve and repeat a previous transaction through any UPI application.
NPCI said MyUPI is designed to function as a trust and control layer rather than simply as a customer-support channel. It will provide multilingual, round-the-clock assistance and self-service options to users.
The new initiatives come as UPI continues to play a central role in India's digital payments ecosystem. According to NPCI, UPI accounts for 89 per cent of digital transactions. NPCI has also been expanding authentication options, including biometric authentication introduced at GFF 2025. As of August 31, 2026, biometric-authenticated UPI transactions had crossed 6.29 billion.
With Tap-and-Pay and MyUPI, the RBI and NPCI are expanding UPI beyond transaction processing to address convenience, customer assistance, security and greater user control.
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