RBI rolls out AI-based UPI HELP, IoT payments, new credit features at GFF 2025

The Reserve Bank of India (RBI) has unveiled a powerful new suite of digital payment innovations — blending AI, IoT, and credit-linked tools to drive the next phase of India’s fintech revolution. Launched at the Global Fintech Festival (GFF) 2025), the four initiatives include AI-based UPI HELP, IoT Payments with UPI, Banking Connect, and UPI Reserve Pay — each designed to make transactions smarter, faster, and more seamless.

Developed in partnership with the National Payments Corporation of India (NPCI), these initiatives aim to reshape how Indians pay, resolving issues through AI, enabling payments via connected devices, simplifying net banking, and integrating credit lines into UPI. RBI Governor Sanjay Malhotra said the innovations mark “a new era of intelligence, interoperability, and inclusivity” in the digital payments ecosystem.

UPI HELP

Leading the innovations is AI-based UPI HELP, an intelligent support system powered by NPCI’s in-house Small Language Model (SLM) trained on vast payment datasets. The system assists users in checking transaction status, managing mandates, and resolving disputes. Initially available in English, it will soon support multiple Indian languages.

The tool also streamlines complaint handling for banks by automating responses, reducing redundant queries, and protecting user privacy. Governor Malhotra said the feature “leverages India’s AI expertise to enhance user trust, convenience, and speed in digital transactions.”

IoT payments with UPI

The RBI also announced IoT Payments with UPI, expanding India’s real-time payments network to smart devices — from connected cars and wearables to smart TVs. The feature enables user-authorized, context-based payments through voice, text, or sensor triggers for services such as EV charging, groceries, and entertainment.

This step aligns with India’s Digital India vision, positioning the country at the forefront of IoT-integrated financial technology, with NPCI providing secure, scalable infrastructure for device-based transactions.

Banking Connect

Banking Connect, developed by NPCI Bharat BillPay Limited (NBBL), introduces interoperability to net banking — simplifying merchant onboarding and settlements. Customers can now make payments directly through their bank apps without multiple logins or complex navigation.

Offering QR and Intent-based options, Banking Connect ensures a mobile-first experience, enabling banks and payment aggregators to transact through a single unified platform. It also fulfills RBI’s Payments Vision 2025 of “E-payments for Everyone, Everywhere, Everytime.”

UPI Reserve Pay

The fourth launch, UPI Reserve Pay, allows users to block a portion of their credit card or pre-approved credit line for specific recurring or one-time expenses. This ensures better credit control and transparency across UPI and merchant apps, streamlining repeat purchases on e-commerce, travel, and food delivery platforms.

Next age of digital payments

Together, these four launches represent the next generation of India’s fintech evolution, blending AI-driven intelligence, IoT connectivity, and interoperable banking frameworks. Governor Malhotra said the initiatives demonstrate India’s leadership in “using technology to build a secure, inclusive, and globally benchmarked payments ecosystem,” reaffirming the RBI’s vision of a digitally empowered economy.