NPCI and SEBI Advance India’s Digital Financial Infrastructure
India’s financial ecosystem is witnessing significant technological transformation with the National Payments Corporation of India (NPCI) introducing new capabilities within the Unified Payments Interface (UPI), while the Securities and Exchange Board of India (SEBI) is advancing technology-driven reforms in the corporate bond market.
NPCI has continued to strengthen UPI through new features aimed at improving convenience, security and accessibility. One recent development enables tap-and-pay transactions using near-field communication (NFC), allowing users to make payments at compatible terminals without opening the UPI application. NPCI is also exploring frameworks for identifying and authorising AI-based payment agents, reflecting the evolving role of artificial intelligence in digital financial services.
UPI’s growing scale underlines the importance of these innovations. According to NPCI data, the platform processed 24.51 billion transactions worth ₹29.82 lakh crore in August 2026, demonstrating the depth of India’s digital payments infrastructure.
On the capital-market side, SEBI and the Reserve Bank of India have launched the Demat 2.0 pilot, focused on tokenised corporate bonds and technology-enabled settlement. The initiative combines tokenised securities, digital settlement assets and smart contracts to support faster and more automated transactions while maintaining legal clarity over ownership.
These measures reflect India’s broader governance approach of using digital technology, regulatory innovation and secure financial infrastructure to improve efficiency, transparency and investor confidence. Together, the initiatives strengthen the foundation for a more modern, resilient and technology-enabled financial system.
