RBI and NPCI working to expand UPI to 20 countries by 2029 shows central bank’s annual report
The RBI and NPCI International Payments plan to extend UPI to 20 countries by 2028-29, in line with Viksit Bharat's 2047 objectives. Efforts include potential partnerships with EU SAARC nations and discussions with central banks for multilateral connections. Recent collaborations involve linking India's UPI with UAE's IPP and connecting RuPay cards and UPI with Mauritius and Sri Lanka. Future plans include linking India's UPI with Nepal's National Payments Interface, having QR code-based UPI payments operational in France and Nepal, and tying up in seven countries.
Admin
Jun 4, 2024
184
0
As reported by ANI, the Reserve Bank of India (RBI) and NPCI International Payments (NIPL) intend to broaden the reach of the Unified Payments Interface (UPI) to 20 nations by fiscal year 2028-29. The RBI Annual Report outlines plans to enhance the international footprint of UPI and RuPay through concerted efforts.
“In light of goals for Viksit Bharat 2047, the Reserve Bank, along with NIPL, will work towards taking UPI to 20 countries with initiation timeline of 2024-25 and completion timeline of 2028-29,” the report said.
Collaborations and Linkages
The RBI report suggests potential partnerships with European Union and South Asian Association for Regional Cooperation (SAARC) countries and exploring multilateral connections for the Fast Payment System (FPS). The Payments Vision Document 2025 by the RBI prioritises the global expansion of UPI and RuPay cards. As stated in the report, discussions are underway with several central banks to establish collaborative agreements.
Recent developments
In July 2023, the RBI and the Central Bank of the UAE (CBUAE) inked a memorandum of understanding (MoU) to interlink their payment systems, encompassing the connection of India's UPI with UAE's Instant Payment Platform (IPP) named Aani, along with their respective card switches (RuPay switch and UAESWITCH).
In February 2024, the connectivity of RuPay cards and UPI between India and Mauritius was inaugurated, facilitating Indian travellers in Mauritius to utilise UPI apps for merchant payments and vice versa for Mauritian travellers in India. Similarly, UPI connectivity between India and Sri Lanka was established in February 2024, enabling Indian travellers to conduct QR code-based transactions at merchant outlets in Sri Lanka using UPI apps.
Future Prospects & Existing UPI Tie-Ups
The RBI and Nepal Rastra Bank are considering connecting India's UPI platform with Nepal's National Payments Interface to enable cross-border payments. In June 2023, NIPL and Nepal Clearing House Ltd. (NCHL) entered a memorandum of understanding (MoU) to pursue this objective.
Currently, QR code-based UPI payments are presently utilised for merchant transactions (e-commerce) in France and Nepal. India has established partnerships with seven countries for UPI payments.
Comments (0)