A method and system for processing contextual information relating to an exchange of a conversation over a communication channel is provided. Several users, and/or service providers are allowed to specify a set of rules relating to a conversation channel. Contextual information, including information relating to the specified set of rules and conditions of the users, is exchanged among the users and/or several service providers when one user requests to initiate a communication channel. The received contextual information is processed to extract a set of rules and the current conditions of users. If the current conditions of the users satisfy the set of rules, a corresponding communication channel is established among the users. However, additional contextual information may be received and processed whenever there is a change in the contextual information during the conversation. Appropriate actions to the existing communication channel may be determined based on the changes.