Economy
India looks to take UPI to Saudi, Bahrain, other Gulf countries
Summary
NPCI is spearheading the talks with Gulf countries to establish bank-to-bank transfer systems for cross-border remittances
NEW DELHI : India is in talks with Gulf countries, including Bahrain and Saudi Arabia, to expand its Unified Payments Interface (UPI) service, people aware of the matter said. While the discussions are in the early stages, many countries have shown interest in advancing the talks, the people said.
The National Payments Corporation of India (NPCI) is spearheading the talks with Gulf countries to establish bank-to-bank transfer systems for cross-border remittances, given that millions of Indians reside and work in the region.
“NPCI is in initial discussions with a few Gulf countries for developing cross-border remittances using UPI, which will be primarily bank account-to-bank account transfers. The discussions have been facilitated by the Reserve Bank of India and other-country central bank collaboration, and by our Indian mission offices," said Dilip Asbe, managing director and chief executive, NPCI.
India is making sustained efforts to export its popular payments platform, which has made small transactions seamless across the country. India and Singapore linked their national payments systems this year to provide a low-cost and safe pathway for annual remittances to the tune of over $1 billion. Bhutan became the first country to adopt the UPI system in 2021 and was quickly followed by Nepal in 2022. In the same year, the United Arab Emirates (UAE) allowed Indian travellers to make payments through UPI-linked accounts. According to the people cited above, talks on digital payments with the UAE are at an advanced stage.
Building on the success of UPI, the government has also allowed non-resident Indians (NRI) to access the payment mechanism on their international mobile numbers. Earlier this year, NPCI permitted NRIs from Singapore, Australia, Canada, Hong Kong, Oman, Qatar, the US, Saudi Arabia, UAE, and the UK to use UPI on their international numbers during their stay in India, saving them the need to purchase an India number for doing financial transactions.
“There is immense scope for innovation. UPI should become a means of financial inclusion and empowerment for the whole world; we have to collectively work for it. I suggest that our financial institutions should also have maximum partnership with fintechs to increase their reach," said Prime Minister Modi during a speech in May.
Exporting India’s digital public infrastructure has also been a key focus of India’s ongoing G20 Presidency. India has pitched digital platforms such as UPI as inclusive and accessible options to affect a digital transformation in the developing world.
