4. Setting Up on Local System

Getting Started With Local Development

  python --version

You need to create Virtual Environment which is used to manage Python packages for certain project.Using Virtual Environment Avoids installing Python packages globally.

  python -m venv env

You need to Activate Environment once which is created use below command to activate it

  env/scripts/activate

  pip install rasa==2.8.1

    rasa init

Choose your directory where do you want to create project
You can able to see project structure of RASA.
nlu.yml: This file contains the possible messages from the user and the corresponding intent. This file is used for creating the intent classification model. Whenever the user inputs a message, the classification model automatically classifies the intent of the message.
Stories.yml: It contains different possible sample interactions between the user and the chatbot. With this sample, the bot will get an idea about what would be the possible reply for user input.
Domain.yml: This file contains different bot responses list all the intents and entities used while creating the nlu.yml file.
Actions.py: This is the python file to run the custom actions. This file can be used for an API call or database querying. When the action is "action_hello" the above code will execute and dispatches the text "Hello" as a reply.
Training: Bot as created a Basic project, now we can train our model based on the data that we have provided. RASA will start to train both nlu and core model and then stores the trained model in the models folder by the following command

  rasa train

RASA will create inital project where you can able to talk to the Bot, When it will ask you to train the Intial Bot: Choose "Yes".

To know more about the usage of the files, i surely recommend you to refer to RASA Docs