The Reserve Bank of India (RBI) and NPCI International Payments Ltd (NIPL) have ambitious plans to expand the reach of the Unified Payments Interface (UPI) to 20 countries by the fiscal year 2028-29. This initiative aligns with the broader goals for Viksit Bharat 2047 and aims to enhance global financial connectivity.
Strategic Collaborations and Agreements
RBI’s Payments Vision Document 2025 outlines the strategy for expanding UPI and RuPay cards internationally. The document emphasizes collaboration with central banks of various countries and establishing multilateral linkages. In July 2023, RBI and the Central Bank of the UAE (CBUAE) signed a Memorandum of Understanding (MoU) to interlink their payments infrastructure. This agreement enables the integration of India’s UPI with UAE’s Instant Payment Platform (IPP) called Aani. And links their respective card switches (RuPay switch and UAESWITCH).
Initial Implementations and Successes
The initial phase of this international expansion has already seen significant milestones.In February 2024, India and Mauritius launched UPI connectivity. By allowing Indian travelers to make seamless QR code-based payments in Mauritius and Mauritian travelers to do the same in India. Similarly, in February 2024, India and Sri Lanka established UPI connectivity, enabling Indian travelers to use UPI apps for payments at merchant locations in Sri Lanka.
RBI and NIPL: Future Plans and Objectives
The RBI and NIPL’s efforts are not limited to bilateral agreements. They are also exploring collaborations with regions such as the European Union and the South Asian Association for Regional Cooperation (SAARC). These efforts aim to create a robust and interconnected global payment ecosystem. Additionally, the RBI’s Payments Vision Document 2025 highlights the goal of expanding the global outreach of UPI and RuPay cards as a key objective under the internationalization pillar.
UPI’s Growing Global Footprint
The international expansion of UPI is already visible in several countries. UPI payment through QR codes is accepted for e-commerce payments in France and Nepal. India has established various kinds of payment tie-ups with seven countries, showcasing the growing global footprint of UPI. In June 2023, NPCI International Payments Ltd. (NIPL) and Nepal Clearing House Ltd. (NCHL) signed an MoU to explore linking the UPI platform of India with the National Payments Interface of Nepal, further facilitating cross-border payments.
Addressing Online Payment Frauds
As the expansion of UPI continues, the RBI remains vigilant about the risks associated with online payment frauds. According to recent data, online payment frauds in India have jumped over 400 percent. The RBI is committed to addressing these challenges by implementing robust security measures and enhancing user awareness to protect consumers and maintain trust in the digital payment ecosystem.
Conclusion
The RBI and NIPL’s initiative to expand UPI to 20 countries by 2028-29 . Which marks a significant step towards global financial integration. Through strategic collaborations and agreements, the RBI aims to enhance the reach of UPI and RuPay cards. While making cross-border payments more accessible and efficient. As these efforts progress, they will not only benefit Indian travelers and businesses but also contribute to the global digital payment landscape, fostering greater financial inclusion and connectivity. Read more Acer Unveils TravelMate P Series Laptops and Chromebook
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