NPCI and Nvidia Collaborate to Strengthen UPI Security with AI-Powered Infrastructure

The National Payments Corporation of India (NPCI) has announced a new collaboration with Nvidia to develop a robust sovereign AI model for India's digital payments system. This collaboration intends to strengthen the country's rapidly expanding payment network, including UPI, by making it more safe, dependable, and efficient.

India already has one of the world's largest real-time payment networks, with millions of transactions processed each day. With the growth of digital payments, there is an enormous need for improved security, faster processing, and smarter systems. NPCI will employ Nvidia's advanced AI and fast processing capabilities to develop a payments-focused AI foundation model.

This project relies heavily on Nvidia Nemotron AI models, which are open models meant for advanced AI development. NPCI intends to develop a payments-native AI system that adheres to India's strict regulatory and data sovereignty regulations. This means that data will remain secure within India and adhere to local compliance standards.

NPCI has already implemented AI in its systems. It recently introduced the UPI Help Assistant, a trial initiative based on a Small Language Model designed specifically for India's financial sector. The assistant helps to answer user complaints and support requests more swiftly and consistently. This demonstrates how Artificial Intelligence can improve customer support in digital payments.

Now, NPCI intends to expand beyond basic artificial intelligence tools. The goal is to create a scalable AI layer that will support the entire payment ecosystem. This includes fraud detection, system monitoring, complaint resolution, and enhanced transaction security. Nvidia has stated that India's fintech infrastructure is among the most advanced in the world. The company's goal is to increase India's fintech and digital payment security through the use of AI and faster computing, while also encouraging responsible innovation.

This collaboration underlines India's commitment to developing strong digital public infrastructure. The program, which combines NPCI's experience administering large-scale payment systems with Nvidia's AI capabilities, is expected to boost assurance, resilience, and long-term stability in India's digital payment ecosystem.

The move marks another big step in the growth of AI-powered financial technology in India.

This article is based on information from The Economic Times