RBI Bets on AI and APIs to Strengthen Digital Payments Infrastructure
Central Bank Expands Digital Public Infrastructure with Focus on Customer Experience
Mumbai, March 24: The Reserve Bank of India is advancing its digital public infrastructure by integrating artificial intelligence and application programming interfaces to improve customer experience and reinforce the country’s payments ecosystem, a senior official said on Tuesday.P Vasudevan, Executive Director at the RBI, stated that the central bank is actively developing new digital public infrastructure platforms powered by AI and APIs, which are expected to play a central role in the future of digital transactions.
"We are also creating more and more DPIs. We are talking about the use of AI to create all those DPIs and APIs. Of course, AI and APIs are going to be the future of all these DPIs and for all your online activities," he said while speaking at MPAI Merchant's Day 2026.
AI to Automate Grievance Redressal and Improve UPI Experience
The RBI is also evaluating the use of artificial intelligence to streamline customer journeys and automate grievance handling as digital payment volumes continue to rise.Highlighting a potential use case, Vasudevan explained how AI-enabled systems could automatically detect and resolve failed UPI transactions.
"For example, let us say I make a UPI transaction and I have an issue, the transaction does not get completed. It automatically picks up this as a grievance and tries to complete the journey. That's what UPI Help is also expected to learn from itself and then try to provide solutions that are going to be useful to the individual," he said.
Such automation, he noted, would reduce the need for manual intervention and help institutions manage increasing transaction volumes more efficiently.
Focus on Reducing Friction as Digital Volumes Surge
As digital payments scale up, the RBI expects a rise in operational friction points. The central bank is therefore prioritizing systems that can proactively address these challenges and ensure smoother user experiences."When the volumes are increasing, definitely the friction points will also increase. It's time for us to look at some of those things to help the user journeys happen much better," Vasudevan said.
Interoperability Key to Seamless Payment Ecosystem
The RBI also underscored the importance of interoperability across platforms and databases to deliver a unified and seamless customer experience.Vasudevan noted that enabling different systems to work together could open opportunities for innovation, including solutions developed by startups aimed at enhancing end-to-end user journeys.
"If you can interoperate or make these multiple disparate systems come together and then try to give a customer the holistic experience, maybe going forward we'll have startups coming in and saying that yes, I've created something like this for a seamless user journey," he said.
Strengthening the Future of Digital Payments in India
The central bank’s push toward AI-driven infrastructure and interoperable systems reflects its broader strategy to future-proof India’s rapidly growing digital payments ecosystem while ensuring efficiency, scalability, and improved customer satisfaction.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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