Unified Payments Interface (UPI) has revolutionized digital transactions in India, and now it's expanding its reach to benefit Non-Resident Indians (NRIs) and international travelers. The National Payments Corporation of India (NPCI) is taking significant steps to make UPI accessible to users with international SIM cards, allowing them to make seamless transactions without the need for an Indian SIM or bank account in select countries.
For NRIs, this means linking their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts to UPI using their international mobile numbers. This eliminates the need to maintain an active Indian mobile number, reducing costs and simplifying the process of making payments in India. To use UPI with an international number, NRIs need an NRE/NRO account with a bank that supports UPI for international numbers, a mobile number registered in an eligible country linked to their NRE/NRO account, and a UPI-enabled app like PhonePe or Google Pay.
Currently, this facility is available to non-residents in 12 countries: Australia (+61), Canada (+1), France (+33), Hong Kong (+852), Malaysia (+60), Oman (+968), Qatar (+974), Saudi Arabia (+966), Singapore (+65), United Arab Emirates (+971), United Kingdom (+44), and the United States of America (+1). Several banks support the linkage of international mobile numbers, including AU Small Finance Bank, Axis Bank, Canara Bank, DBS Bank Ltd, HDFC Bank, ICICI Bank, and State Bank of India. Popular UPI-powered apps like PhonePe, Google Pay, and BHIM also support this feature.
The process for NRIs to activate UPI on their NRE/NRO account involves ensuring that their account is UPI-enabled, registering their international mobile number with the bank, downloading a UPI-enabled app, and verifying their number to set up UPI. Once activated, they can make payments, transfer funds, and use UPI features seamlessly.
For international travelers visiting India, the "UPI One World" wallet offers a convenient solution. This prepaid wallet allows travelers to make UPI transactions without needing an Indian SIM card or bank account. Introduced in 2023 during the G20 India summit, "UPI One World" is being expanded to accommodate visitors from more countries, providing greater accessibility and convenience. Travelers can obtain this service at select airports and merchant stores, load money into their wallets using credit or debit cards, and exchange money at select counters. Upon departure, any remaining balance can be easily encashed.
To use "UPI One World," travelers must complete a KYC procedure with details like a passport, visa, and an international phone number. This payment system is based on Prepaid Payment Instrument (PPI) technology.
UPI is also gaining ground for international transactions beyond India's borders. Several countries have already adopted UPI, making it easier for Indian travelers to make payments without currency exchange hassles. These countries include Sri Lanka, Mauritius, France, the UAE, Singapore, Bhutan, and Nepal. In these countries, Indian travelers can make QR-based payments at local businesses, simplifying cross-border transactions.
The expansion of UPI internationally is facilitated through partnerships between NPCI International Payments Ltd (NIPL) and local banks or payment networks. While UPI is not yet universally applicable, its presence is expanding significantly, with plans to target more countries in Southeast Asia and the Middle East.
