Latest changes in digital payments. NPCI allows NRIs from 10 countries to use UPI payments in India

UPI payment for NRIs

UPI payment for NRIs

Unified Payments Interface (UPI) has become India's widely-used digital payment mode. It transfers funds from one bank account to another through the mobile phone and is simple and convenient, thus its popularity. In December 2022, UPI payments crossed Rs.12.82 lakh crores as more and more users preferred UPI payments over cash.

Related - Know what UPI is and how it works

The National Payments Corporation of India (NPCI), governing UPI payments in India, continuously changes the payment rules for convenient payments. Recently, the NPCI issued a circular allowing UPI payments for NRIs residing in different countries. Let’s see what the circular states.

New UPI rules

In the new circular, the NPCI has allowed the scope of UPI payments for Non-Resident Indians (NRIs) who maintain an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account in India. Here’s what the circular states –

  • NRIs living in 10 specified countries will be allowed to make UPI payments.
  • UPI payments can be made through their international mobile numbers.
  • NRIs should have an NRE, or an NRO bank account maintained in an Indian bank.

The 10 countries that have been recognised are as follows –

UPI payments for NRIs

NRIs can register on the UPI platform with their international phone numbers and then make UPI payments from their NRE or NRO account maintained with an Indian bank.

Conditions for UPI usage

To access UPI payments, the following conditions should be met –

  • Indian banks, where the NRE or NRO accounts are maintained, should ensure that the UPI transactions are pursuant to the Foreign Exchange Management Act (FEMA) rules and regulations.
  • The banks should follow the guidelines and rules issued by financial authorities and the RBI from time to time.
  • Banks remitting money through UPI and those receiving the funds should ensure that anti-money laundering and other fraudulent financial transactions are weeded out.
  • There should be transaction-level checks by the participating banks.
  • Onboarding rules, as dictated by the NPCI, should be adhered to.
  • Member banks should facilitate UPI transactions and fulfil the directives issued by the NPCI by 30th April 2023.

Benefits for NRIs

Non-availability of UPI was a major bone of contention for NRIs seeking to make digital payments in India. With the changed rules, the payments will become easier, allowing NRIs to transact in India with their international phone numbers. This will come in handy in making payments for family members living in India. Moreover, RBI’s initiative of digital payments will also receive a boost.

So, if you are an NRI and live in the 10 countries where the UPI facility has been made available, register for the payment mode and enjoy hassle-free payments. Know the rules of UPI payments so you can integrate the payment system and pay conveniently.

Related - Check out RBI's latest mandates on UPI payments for recurring expenses.

See this video to know more about UPI payments for NRIs and PIOs

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