RBI said that going forward this facility will be started at all the entry points of the country.
Experts believe that India’s UPI is one of the most successful electronic payment systems globally. Therefore, the extension of its services to citizens of G20 countries will boost India’s relations with these countries for future cooperation.
Reserve Bank of India Proposed to allow foreign tourists to make merchant payments in India through Unified Payments Interface (UPI).
UPI is a system that integrates multiple bank accounts into a single mobile application (of any participating bank), merging multiple banking features, seamless fund routing and merchant payments under one hood.
Experts believe that India’s UPI is one of the most successful electronic payment systems globally. Therefore, the extension of its services to citizens of G20 countries will boost India’s relations with these countries for future cooperation.
Rajashree Rangan, Head of Banking and Payments, India and Philippines, FIS, said that this is a great step to increase the usage of digital payments in India as well as improve their payment experience.
Read also: PhonePe allows international UPI transactions; First Indian Fintech to get this facility
It has been decided to allow access to UPI to foreign nationals and NRIs visiting India. Initially, this facility is extended to travelers from G-20 countries for making merchant payments (P2M) at select international airports while they are in the country.
Going forward it will be enabled at all entry points in the country, RBI said.
SafeXpe co-founder and COO Swapnil Jambhale said the move comes at a strategic point after announcing UPI facility for NRIs along with linking of NRE and NRO accounts to their mobile numbers.
“This move will strengthen India’s position as a payments leader in the global market. In-bound travelers from G20 countries will be able to experience UPI payments while transacting at various merchants. Once these passengers arrive in India, they will be able to avail the facility by following the necessary procedure laid down by RBI at the airports and select entry points.”
How will it work?
- Banks/non-banks permitted to issue Prepaid Payment Instruments (PPIs) may issue full-KYC PPIs in Indian Rupees to foreign nationals visiting India.
- Such PPIs can also be issued in co-branding arrangement with entities authorized to deal in foreign exchange under FEMA
- PPIs will be issued after physical verification of passport and visa of the customers at the point of issue
- PPI issuers shall ensure that such information and records thereof are maintained with them
- The PPI can be issued in the form of a UPI linked wallet and can be used only for merchant payments (P2M).
- The loading / reloading of such PPIs shall be against receipt of foreign exchange in cash or through any payment instrument
- Conversion into Indian Rupees will be done only by entities authorized under FEMA to deal in foreign currency
- The outstanding balance in such PPI at any point of time shall not exceed the limit applicable to full-KYC PPIs
- Unutilized balance in such PPIs can be redeemed in foreign currency or transferred ‘back to source’ (payment source from where the PPI was loaded) in compliance with foreign exchange regulations.
What is G20?
The Group of 20 (G20) is an intergovernmental forum of the world’s major developed and developing economies.
This includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, US and European. Union (EU).
Meanwhile, payment transactions through UPI are set to grow by 1.3 per cent in January 2023 to reach an all-time high of around Rs 13 lakh crore.
Read also: MobiKwik and Paytm will now accept RuPay credit card payments through UPI
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