India is preparing a framework that would allow AI agents to make small digital payments through the Unified Payments Interface without requiring approval for every transaction, three sources familiar with the matter said. The Unified Agent Protocol is likely to be unveiled next week at Mumbai's Global Fintech Fest. The initiative could make UPI one of the world's largest networks for agentic payments and place India among the first countries with national infrastructure for AI-driven payments. UPI, operated by the National Payments Corporation of India, is the world's largest retail fast-payment system by transaction volume, according to a 2025 IMF report. It processed 24.51 billion transactions worth 29.82 trillion Indian rupees ($314.21 billion) in August, with Google Pay and Walmart's PhonePe handling around three-fourths of monthly volumes. Early applications are expected to include groceries and other frequent, low-value purchases, while e-commerce platforms could capture initial demand. The protocol is expected to build on UPI Circle, which delegates payment authority, and Reserve Pay, which blocks funds for multiple debits. Banks currently cap those blocks at 10,000 rupees ($105.44) for up to 90 days, but the limits and validity period could be revisited for AI-agent use. NPCI is expected to provide merchant integration tools supporting customer-set payment rules, spending limits, audit trails, identity checks and a liability framework. Mastercard and Visa are separately developing similar payment capabilities in India. Mastercard completed its first authenticated agentic transaction in New Delhi in June, while Pine Labs launched its P3P protocol earlier this year for UPI payments after a single upfront authorisation.