UPI set for Uzbekistan rollout as India expands digital payments footprint and strengthens bilateral ties

Uzbekistan has joined the list of countries that is set to adopt the unified payment interface (UPI) system, the Ministry of External Affairs (MEA) announced today. Speaking to reporters, MEA Secretary (West) Sibi George said the development comes on the back of Prime Minister Narendra Modi's two-day long official visit to Tashkent from Saturday.

“Another important development is the UPI rollout for Uzbekistan. It adds to the global expansion of Indian digital infrastructure, which helps further digital transactions between our two countries,” George announced.

According to a PTI report, a commercial pact was firmed up between the NPCI International Payments Ltd (NIPL) and Uzbekistan's National Interbank Processing Centre JSC to enable UPI apps of India to scan national QR - UZQR for making merchant payments in the Central Asian nation.

India-Uzbekistan comprehensive strategic partnership

He added that both countries have signed a memorandum of understanding (MOU) on mining, to support collaboration on critical minerals such as uranium, noting that “Infrastructure development is another important area. Several Indian companies are already expanding their footprint in Uzbekistan…”

India and Uzbekistan on Sunday signed a comprehensive strategic partnership and set a target of $5 billion in annual trade by 2030 following talks between Prime Minister Narendra Modi and Uzbek President Shavkat Mirziyoyev, PTI reported.

A total of 11 agreements were inked focusing on trade, investment, infrastructure, critical minerals, mining, defence and security, agriculture, pharmaceuticals, health, information technology, digital public infrastructure, including UPI, culture, tourism, and education.

“Uzbekistan is at the heart of Central Asia and is at the heart of India's engagement in the region. A stronger India-Uzbekistan partnership will be a powerful force for peace, progress and prosperity in Central Asia,” Modi said in a statement.

Travelling to Uzbekistan? UPI facility soon for Indians

The UPI system being implemented abroad, allows eligible customers, including Indian tourists and travelers visiting foreign countries, to securely send and receive money instantly while significantly lowering payment costs compared with conventional cross-border transfer methods.

It is designed to reduce transaction costs to a fraction of conventional transfer fees due to charges imposed by international credit or debit cards, besides additional forex processing charges. It also enables cash-free travel for tourists, allowing digital payments directly from linked Indian bank accounts without the need for significant cash in hand.

There is also benefit of near-instant payments eliminating delays and dependence on international payment networks for traditional payment methods. And UPI allows for real-time expense tracking as transactions are conducted directly from linked bank accounts or UPI apps.

UPI in foreign countries: Check full list here

As UPI acceptance widens globally, users can expect several practical advantages while travelling to participating locations. Expansion across various countries will largely benefit Indian tourists, students and business travelers abroad by allowing use familiar UPI-enabled mobile apps for payments instead of relying solely on international debit or credit cards.

Uzbekistan has become the latest on the list of countries set to adopt the online payment system. Here's a look at the countries and respective partner institutions, using UPI:

Disclaimer: This story is for educational purposes and only intends to spread awareness. We advise readers to check and discuss with certified experts before making any financial decisions.