RBI and NPCI Launch UPI Tap & Pay and AI-Powered MyUPI at GFF 2026

The Reserve Bank of India has introduced UPI ‘Tap & Pay’ and the AI-driven MyUPI platform, marking a significant shift toward hardware-integrated and automated customer support in the world’s largest real-time payment ecosystem. These innovations address critical friction points in offline merchant payments and dispute resolution, offering fintech leaders a blueprint for scaling digital payments through enhanced security.

What was announced

Launched at the Global Fintech Fest (GFF) 2026 by RBI Governor Shri Sanjay Malhotra, the new features aim to streamline the user experience while hardening the system's security framework. UPI ‘Tap & Pay’ utilizes Near Field Communication (NFC) technology, allowing users to complete transactions by tapping their smartphone on a POS terminal. Crucially, the feature does not require the user’s device to have active internet connectivity, as it leverages the POS terminal's connection. It supports various account types, including RuPay Credit Cards on UPI, and permits PIN-less transactions for amounts up to ₹5,000.

Alongside this, the RBI introduced MyUPI, also known as UPI Help 2.0. This platform is powered by the National Payments Corporation of India’s (NPCI) Small Language Model, known as FiMI. MyUPI provides a consolidated view of transactions and AutoPay mandates across different banks and apps. It introduces several "Safety Switch" controls, such as the ability to delink mobile numbers and request the declining of debit transactions if a compromise is suspected. Additionally, the platform automates chargeback processing in real-time for eligible transactions and includes a "Transaction Replay" feature to repeat past payments easily. These updates follow the success of biometric authentication, which recorded over 6.29 billion transactions by the end of August 2026.

"The RBI Governor launched UPI ‘Tap & Pay’ on POS which allows users to make faster payments by unlocking their NFC-enabled smartphone and tapping it on an NFC-enabled Point-of-Sale (POS) terminal. The feature does not rely on user’s mobile internet connectivity as transactions can be completed using the POS machine’s internet connection. The feature is designed to make everyday payments faster and seamless for consumers."

Shri Sanjay Malhotra, Governor at the Reserve Bank of India (RBI).

The companies involved

The Reserve Bank of India (RBI) serves as the nation's central banking institution, responsible for the regulation of the Indian banking system and the control of monetary policy. Under the leadership of Governor Shri Sanjay Malhotra, the RBI has been a primary driver of digital financial inclusion through its oversight of payment systems. Working in tandem with the central bank is the National Payments Corporation of India (NPCI). Established as an initiative of the RBI and the Indian Banks' Association, NPCI is the umbrella organization for operating retail payments and settlement systems in India.

NPCI is the architect behind the Unified Payments Interface (UPI), which has become a global benchmark for real-time payments. The organization is led by Shri Ajay Kumar Choudhary, who serves as Non-Executive Chairman and Independent Director. By developing proprietary technology like the FiMI Small Language Model, NPCI continues to transition from a pure infrastructure provider to a sophisticated technology developer, maintaining India's competitive edge in the global fintech landscape.

What FF News has reported before

FF News has closely tracked the rapid evolution of the Indian fintech sector and the expansion of the UPI ecosystem. Recently, we covered how Fino Payments Bank Launches Cash@UPI to Revolutionize Last-Mile Cash Access in India, demonstrating the protocol's versatility in cash management. The broader institutional shift toward digital security was also highlighted when SIDBI Goes Live with MonetaGo Secure Financing to Bolster MSME Lending in India. Additionally, the intersection of traditional finance and emerging tech was a key theme at the Unchained Summit India Debuts in Mumbai as Capital, Markets and Web3 Converge. We also noted the strong financial performance of local players, such as when Unifinz Capital Revenue Surges 117% to ₹180 Crores in Strong Q1FY27 Performance.

What this means

The introduction of NFC-based tapping and AI-driven support suggests that the Indian market is moving past the adoption phase of digital payments into a sophistication phase. By removing the requirement for consumer-side internet at the point of sale, the RBI is directly challenging the reliability gap that often pushes users back to cash in low-connectivity areas. Furthermore, the move to automate chargebacks via a Small Language Model puts immense pressure on traditional banking customer service departments to modernize. The industry must now grapple with whether these centralized safety features will reduce the liability burden on individual apps or create new systemic risks.