NPCI Unlocks UPI AutoPay

The National Payments Corporation of India (NPCI) is planning to make UPI AutoPay interoperable, allowing users to port their existing mandates across UPI apps. This means that users will be able to shift their existing AutoPay mandates to another UPI app instead of cancelling and recreating them.

The proposed system will enable users to move mandates from one payment provider to another, making it easier for them to manage their recurring payments. For example, users will be able to port their mandates for subscriptions, insurance premiums, loan repayments, and mutual fund investments to another UPI app.

NPCI also plans to launch a framework for agentic AI payments on UPI, called the Unified Agent Protocol. This protocol will leverage existing UPI mechanisms, including UPI Circle and Reserve Pay, to allow users to delegate payment authority to AI agents within a pre-set limit.

The initial rollout of the agentic AI framework will target low-value, high-frequency transactions such as grocery orders and routine digital purchases. Over time, NPCI expects AI agents to handle more sophisticated use cases like placing orders automatically based on sales or discounts.

## Why it matters The proposed interoperability will not alter the bank account linked to a mandate, and recurring payments will continue to be debited from the account originally authorised by the customer. This change will make it easier for users to monitor upcoming debits and identify subscriptions they no longer need. The move is also expected to benefit merchants who switch payment gateways or acquiring banks, as they will be able to move existing mandates to the new provider without requiring customers to register again.

The NPCI launched UPI AutoPay in 2020 to enable recurring payments for services such as subscriptions, insurance premiums, loan repayments, and mutual fund investments. The new features are expected to be announced at the Global Fintech Fest in Mumbai next month.