India proposes AI-powered conversational payments system — RBI

[Bitcoin Smith]

To enable users to engage in conversation with AI-powered systems to make payment. With the objective of harnessing new technologies for enhancing digital payments, the RBI has proposed enabling 'conversational payments' on UPI, which will enable users to engage in conversation with AI-powered systems to make payments.

Full article

Good thing is India is moving towards the trends and try to adopt AI into the monetary system but unfortunately I can't find relevant information about how this will actually works cause all I can see is about UPI LITE which is an already existing feature over a year which is used to make offline UPI payments but still can't able to relate with AI integration.

Any thoughts?

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1714630642

[pakhitheboss]

The problem with UPI lite is that it only allows INR 500 transaction per day without using UPI PIN. I am still unable to relate why I would need INR 500 transaction with the lite version. I could easily withdraw cash or borrow money for 24 hours from a friend for such an amount. I somehow feel they needed a new feature to be added to the UPI and they came up with an abrupt new feature. As per my understanding not many have availed this feature. The same fate will happen with the AI chat bot. Indians are very particular about finance and don't generally accept new technology associated with it.

[Bitcoin Smith]

The problem with UPI lite is that it only allows INR 500 transaction per day without using UPI PIN. I am still unable to relate why I would need INR 500 transaction with the lite version. I could easily withdraw cash or borrow money for 24 hours from a friend for such an amount.

AFAIK, the value can be upto 2000 INR so I guess it differs based on the UPI wallet providers.


And the actual reason for UPI lite is to avoid transaction failure which mostly experienced by every UPI user due to bank server's down.

Also, it makes the bank accounts statements clean instead of filled with penny transactions and 100s of pages.

[pakhitheboss]

The problem with UPI lite is that it only allows INR 500 transaction per day without using UPI PIN. I am still unable to relate why I would need INR 500 transaction with the lite version. I could easily withdraw cash or borrow money for 24 hours from a friend for such an amount.

AFAIK, the value can be upto 2000 INR so I guess it differs based on the UPI wallet providers.


And the actual reason for UPI lite is to avoid transaction failure which mostly experienced by every UPI user due to bank server's down.

Also, it makes the bank accounts statements clean instead of filled with penny transactions and 100s of pages.

My experience of failure of UPI transaction is mostly on weekends. After such experience I started carrying cash without fail. Still I feel this feature doesn't make much sense when you have alternatives available and which are more reliable. What is the guarantee that UPI lite won't fail when needed. To save oneself from embarrassment always carry some amount of cash or your debit card with yourself.

[pawanjain]

The problem with UPI lite is that it only allows INR 500 transaction per day without using UPI PIN. I am still unable to relate why I would need INR 500 transaction with the lite version. I could easily withdraw cash or borrow money for 24 hours from a friend for such an amount. I somehow feel they needed a new feature to be added to the UPI and they came up with an abrupt new feature. As per my understanding not many have availed this feature. The same fate will happen with the AI chat bot. Indians are very particular about finance and don't generally accept new technology associated with it.

I am using UPI lite on daily basis and I find it useful because I don't have to enter my PIN every time I make a transaction.
I am using Phonepe and we can add 1000rs to UPI lite which is sufficient for day to day transactions.
Just when the balance is low we can add more funds to it to keep it going and I personally think it's good that amount is restricted to 1000.
It will keep us secured from unwanted transfers of large amount.

Coming to the AI chat based payments I don't find it useful at all. I mean, why would I chat with AI when I have to make the payment.
The way it is now is far better. Just enter the details and send. Chatting for payments would be ridiculous and I would definitely not use it.

[avikz]

India's payment technologies are way ahead of many other first world countries. Honestly, this UPI payment is a path-braking innovation. Earlier this year I had visited couple of EU countries, and their fiat payment system looks encient. It seemed I travelled back in time of fiat transactions which has been long forgotten in India.

This conversational AI will be another super system but can be misused if not implemented well.

[teosanru]

To enable users to engage in conversation with AI-powered systems to make payment. With the objective of harnessing new technologies for enhancing digital payments, the RBI has proposed enabling 'conversational payments' on UPI, which will enable users to engage in conversation with AI-powered systems to make payments.

Full article

Good thing is India is moving towards the trends and try to adopt AI into the monetary system but unfortunately I can't find relevant information about how this will actually works cause all I can see is about UPI LITE which is an already existing feature over a year which is used to make offline UPI payments but still can't able to relate with AI integration.

Any thoughts?

Even though I support whenever any government thinks of progressive tech but I don't really get this Idea. Why is AI needed for Conversational payments? There is no brain needed for Conversational payments. You just say you want to pay 500 INR to anyone it should automatically pay it just like any other audio device like Alexa. Moreover isn't it dangerous? Yes AI might use voice recognition system to avoid that hacking but AI Can easily be used to even replicate someone's voice. So I don't really understand the point of this innovation?

[pakhitheboss]

Even though I support whenever any government thinks of progressive tech but I don't really get this Idea. Why is AI needed for Conversational payments? There is no brain needed for Conversational payments. You just say you want to pay 500 INR to anyone it should automatically pay it just like any other audio device like Alexa. Moreover isn't it dangerous? Yes AI might use voice recognition system to avoid that hacking but AI Can easily be used to even replicate someone's voice. So I don't really understand the point of this innovation?

I did some thinking after your reply and found out that this technology would be highly useful for those who are struggling to use UPI. Most old age person are not that proficient with the new technology. Inmean the age group of 55 & above. They are good with WhatsApp and Facebook but fear using UPI as they might do something wrong and lose their money. For them this feature would be very helpful. Another aspect that I think the government would add in the future is voice based biometric technology with the AI. That will enhance the security of transaction being done. As I said earlier this feature won't be helpful for everyone and I know feel it is being added to help a specific age group.

[pawanjain]

Even though I support whenever any government thinks of progressive tech but I don't really get this Idea. Why is AI needed for Conversational payments? There is no brain needed for Conversational payments. You just say you want to pay 500 INR to anyone it should automatically pay it just like any other audio device like Alexa. Moreover isn't it dangerous? Yes AI might use voice recognition system to avoid that hacking but AI Can easily be used to even replicate someone's voice. So I don't really understand the point of this innovation?

I did some thinking after your reply and found out that this technology would be highly useful for those who are struggling to use UPI. Most old age person are not that proficient with the new technology. Inmean the age group of 55 & above. They are good with WhatsApp and Facebook but fear using UPI as they might do something wrong and lose their money. For them this feature would be very helpful. Another aspect that I think the government would add in the future is voice based biometric technology with the AI. That will enhance the security of transaction being done. As I said earlier this feature won't be helpful for everyone and I know feel it is being added to help a specific age group.

At the same time, there are equal chances of getting scammed. Just imagine how good malicious AI can be when these voices are recorded and then AI generates your voice to make payments to hackers.
Just see how generative AI is creating images of people and I assume the same can be done with voice and so I think AI should not be used for payments at all costs.
It's a terrible idea to use AI for payments.

[pakhitheboss]

Even though I support whenever any government thinks of progressive tech but I don't really get this Idea. Why is AI needed for Conversational payments? There is no brain needed for Conversational payments. You just say you want to pay 500 INR to anyone it should automatically pay it just like any other audio device like Alexa. Moreover isn't it dangerous? Yes AI might use voice recognition system to avoid that hacking but AI Can easily be used to even replicate someone's voice. So I don't really understand the point of this innovation?

I did some thinking after your reply and found out that this technology would be highly useful for those who are struggling to use UPI. Most old age person are not that proficient with the new technology. Inmean the age group of 55 & above. They are good with WhatsApp and Facebook but fear using UPI as they might do something wrong and lose their money. For them this feature would be very helpful. Another aspect that I think the government would add in the future is voice based biometric technology with the AI. That will enhance the security of transaction being done. As I said earlier this feature won't be helpful for everyone and I know feel it is being added to help a specific age group.

At the same time, there are equal chances of getting scammed. Just imagine how good malicious AI can be when these voices are recorded and then AI generates your voice to make payments to hackers.
Just see how generative AI is creating images of people and I assume the same can be done with voice and so I think AI should not be used for payments at all costs.
It's a terrible idea to use AI for payments.

Agreed AI technology can become an issue in this matter. Not only in India but in other countries globally there isn't any law or regulation for AI. While the world was thinking about crypto regulation, the dominance of AI can become much worst for governments globally. At the moment there is only one state in the US that has said AI based art won't fall under the copyright law.