NPCI launches subsidiary NTSL to focus on AI, blockchain and digital financial infrastructure

NTSL’s mandate and leadership

NPCI has formed NPCI Tech Solutions Ltd (NTSL) as a wholly owned subsidiary to focus on AI, blockchain, and digital financial infrastructure. The new entity will function as NPCI’s technology and innovation arm, offering services such as global capability centre (GCC) support, eKYC Setu, and the Unified Ticketing Platform (UTP) for digital public infrastructure programmes.

Vishal Kanvaty, former Chief Technology Officer at NPCI, has been appointed as the MD and CEO of NTSL. Kanvaty has previously led the development and commercialisation of platforms now under NTSL’s purview, according to Inc42.

NPCI’s broader technology initiatives

NTSL’s launch follows NPCI’s recent unveiling of AiNxt and AtOM at the Global Fintech Fest in September. AiNxt is designed to help enterprises build AI agents, while AtOM automates workflows across the payments ecosystem, including UPI, with digitally signed interactions for audit trails.

NPCI also demonstrated an agentic AI framework for UPI at the event, showcasing how user-authorised AI assistants could handle product discovery, ordering, and payments within a single conversational flow. These initiatives align with NPCI’s multi-year research partnership with the Indian Institute of Science (IISc), which focuses on AI and blockchain prototypes, workshops, and training programmes.

UPI’s growth and regulatory developments

The formation of NTSL comes amid record growth for UPI, which processed 25.47 billion transactions in October, valued at ₹31.53 lakh crore—a 7.4% increase from the previous month. The average daily transaction value crossed ₹1 lakh crore for the first time.

NPCI has deferred the introduction of merchant discount rate (MDR) charges on select UPI payments, originally scheduled for October 15, until after Diwali. The decision follows industry feedback and regulatory considerations.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

NTSL’s formation signals NPCI’s intent to formalise and scale its technology and innovation capabilities beyond its traditional payments infrastructure. For founders and operators in the fintech and payments space, this move suggests three things. First, NPCI is doubling down on AI and blockchain as competitive differentiators, potentially raising the bar for innovation across the ecosystem. Second, the creation of a dedicated subsidiary could accelerate the commercialisation of platforms like AiNxt and AtOM, which may emerge as alternatives or complements to third-party solutions. Finally, the deferral of MDR charges on UPI payments buys startups and merchants additional time to prepare for potential cost implications, though the long-term regulatory framework remains uncertain.

Key takeaways

• NTSL’s focus on AI and blockchain could set new benchmarks for innovation in India’s payments ecosystem, prompting startups to evaluate their own technology roadmaps.
• The introduction of platforms like AiNxt and AtOM may create opportunities or competition for fintech startups offering similar automation or AI-driven solutions.
• The deferral of MDR charges on UPI provides temporary relief for merchants and startups, but the regulatory environment for payments remains fluid.

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