India is preparing a framework that would let AI agents make small digital payments on the Unified Payments Interface, or UPI, without approval for each transaction, according to three sources.

The Unified Agent Protocol is likely to be unveiled next week at the Global Fintech Fest in Mumbai.

The proposal would use existing UPI features that already allow delegated payments through UPI Circle, and blocked-funds flows under UPI Single Block Multiple Debits, also known as UPI Reserve Pay.

UPI, run by the National Payments Corporation of India, handled 24.51 billion transactions worth 29.8 trillion rupees, or about US$314.21 billion, in August.

A 2025 International Monetary Fund report called it the world’s largest retail fast-payment system by transaction volume.

Under the framework, customers could set rule-based instructions for AI agents on when and how much to pay, with spending limits, audit trails, and identity checks.

The sources also said the National Payments Corporation of India plans to include a liability framework, but did not give details.

The move would also place UPI alongside efforts by Visa and Mastercard, which are building payment capabilities for AI agents in India.

Mastercard said it completed its first authenticated agentic transaction in New Delhi in June.

🔗 Source: Reuters

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