The Reserve Bank of India (RBI) is setting its sights on expanding the global reach of the Unified Payments Interface (UPI) and RuPay cards. In its Annual Report, the RBI has identified a goal to take UPI to 20 countries by the fiscal year 2029. This ambitious initiative will be carried out in collaboration with NPCI International Payments Ltd (NIPL), with a projected timeline of initiation in 2024-25 and completion by 2028-29.
To achieve this goal, the RBI is exploring various collaborative arrangements with other countries and regions. The report mentions the possibility of a Fast Payment System (FPS) collaboration with groups such as the European Union and the South Asian Association for Regional Cooperation (SAARC). Additionally, multilateral linkages will be explored to further enhance the global footprint of UPI and RuPay.
Recent milestones include the signing of a memorandum of understanding (MoU) between the Reserve Bank and the Central Bank of the UAE (CBUAE) to interlink their respective payment infrastructures. This MoU will facilitate cooperation between India’s UPI and the UAE’s Instant Payment Platform (IPP) called Aani, as well as the connection of both countries’ Card Switches (RuPay switch and UAESWITCH).
In February 2024, connectivity between India and Mauritius was launched, enabling Indian travelers to make payments in Mauritius using UPI apps. A similar initiative was undertaken with Sri Lanka, allowing Indian travelers to make QR code-based payments at merchant locations using UPI apps. The RBI is also exploring the linkage of UPI with Nepal’s National Payments Interface for facilitating cross-border payments.
UPI payments through QR codes are already accepted for merchant (e-commerce) payments in countries like France and Nepal. India has established partnerships with seven countries to enable payments through UPI, signaling a growing global acceptance of the platform.
The RBI’s vision for expanding the international reach of UPI and RuPay represents a significant step towards enhancing India’s presence in the global payments ecosystem. By fostering collaborative partnerships with other countries and regions, the RBI is paving the way for seamless cross-border transactions and enabling greater financial inclusion on a worldwide scale.
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