NPCI Launches AI and Blockchain Unit NTSL, Expands Beyond Payments with 25.47 Bn UPI Transactions

NPCI Establishes NTSL as Technology and Innovation Arm

The National Payments Corporation of India (NPCI) has launched NPCI Tech Solutions Limited (NTSL), a wholly owned subsidiary dedicated to advancing AI and blockchain capabilities beyond its traditional payments mandate.1

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This strategic move positions NPCI to capitalize on emerging technologies reshaping digital financial infrastructure and financial services across India's rapidly evolving digital economy.

NPCI forms unit to push into AI by appointing Vishal Kanvaty, the organization's chief technology officer for nearly a decade, as managing director and CEO of NTSL.2

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Kanvaty has led the development and commercialization of several platforms that now fall within NTSL's focus areas, bringing substantial expertise to the AI blockchain-focused subsidiary. NPCI CEO Dilip Asbe emphasized that advancements in AI and other emerging technologies are creating new possibilities across digital infrastructure and financial services.3

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Expanding Beyond Core Payments Mandate

NPCI expands beyond payments through NTSL's mandate to build capabilities in AI, blockchain, digital financial infrastructure, and global capability centre services.1

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The technology and innovation arm will provide tech services for several digital public infrastructure programmes, including eKYC Setu and the Unified Ticketing Platform.2

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This expansion reflects India's increasing focus on advancing AI research and development, particularly within its banking and financial services sector.

NTSL becomes NPCI's fourth wholly owned subsidiary, joining NPCI International Payments Ltd, NPCI Bharat BillPay Ltd, and NPCI BHIM Services Ltd.3

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While NPCI operates retail payments and settlement systems including the popular Unified Payments Interface (UPI), NTSL will pursue opportunities beyond this core function to strengthen the group's technology capabilities across multiple domains.

Building on Existing Technology Initiatives

The formation of NTSL follows several technology initiatives already underway at NPCI. At the Global Fintech Fest in September, the organization launched AiNxt and AtOM, platforms designed to help enterprises build AI agents and automate workflows across the payments ecosystem.2

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AiNxt enables enterprises to build, test, and deploy custom AI agents, while AtOM handles integration, change management, and partner onboarding across UPI with digitally signed interactions providing audit trails.

NPCI's work in emerging technologies also includes a multi-year research partnership with IISc, announced in March 2024, covering AI and blockchain.2

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The collaboration envisages developing models and software prototypes alongside workshops and training programmes. At GFF 2025, NPCI demonstrated an agentic AI framework for UPI, showing how user-authorized AI assistants could discover products, place orders, and complete payments within a single conversational flow.

UPI Growth Continues Amid Technology Expansion

The expansion comes alongside continued growth in NPCI's flagship payments network. UPI processed a record 25.47 Bn transactions in October, up 5.8% month-over-month, while transaction value increased 7.4% to ₹31.53 Lakh Cr.2

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Average daily transaction value crossed ₹1 Lakh Cr for the first time, demonstrating the platform's expanding role in India's digital economy.

This growth trajectory suggests NTSL will have substantial opportunities to apply AI and blockchain innovations across an already massive and growing payments infrastructure. The timing positions NPCI to integrate cutting-edge technologies into systems handling billions of monthly transactions, potentially setting new standards for digital public infrastructure globally. Watch for NTSL's initial service rollouts and partnerships as indicators of how quickly the subsidiary can translate its technology mandate into market-ready solutions.