India’s government will take a big step for the convenience of Indian citizens working in Gulf countries like Saudi Arabia and Bahrain. According to reports, the National Payments Corporation of India (NPCI) is in talks with several Gulf countries, including Bahrain and Saudi Arabia, to expand the Unified Payments Interface (UPI) service. Although this conversation is still in the initial stage, Gulf countries also show interest in UPI.
If the Government of India succeeds in launching UPI in Gulf countries, then it will be helpful for millions of Indian citizens who work there. Indians working in Gulf countries transfer some of their earnings to their families in India. In which they also have to face difficulties many times. With the introduction of UPI, Indian workers will easily be able to transfer their money to their families.
NPCI Managing Director and CEO Dilip Asbe said NPCI is discussing with some Gulf countries to develop a cross-border money transfer system through UPI. It will be in the account. This conversation has occurred between the Reserve Bank of India, the Gulf countries’ central bank, and our Indian mission offices.
Government Has Been Pushing For UPI Facility Abroad
NPCI and other Indian financial institutions are constantly making efforts to make UPI facilities available in other countries. Earlier this year, India and Singapore linked their national payment systems to UPI, a secure and low-cost system for annual money transfers of over a billion dollars. Bhutan was the first country to adopt the UPI system. NPCI signed an agreement with Bhutan in 2021. Nepal was the second country that adopted UPI. In the year 2022, Nepal had approved the launch of the UPI system.
In 2022, the United Arab Emirates (UAE) allowed Indian travellers to make payments through accounts linked to UPI. Dilip Asbe, Managing Director and CEO of NPCI says digital payments talks with UAE are advanced.
NPCI International Payments Limited (NIPL), the international arm of NPCI in Bhutan, and the Royal Monetary Authority of Bhutan have agreed to implement BHIM- UPI-based payment system. Rupay cards and UPI are also being used in Oman. Lulu Financing Holding, Mashrak Bank and Network International in UAE have signed an agreement. In addition, there is an agreement with Lyra Network in France and UK Terrapay-Payxpert.
The government has also allowed Non-Resident Indians (NRIs) to use UPI through their international mobile numbers. NPCI has allowed NRIs from Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE and the UK to use UPI in their international numbers while in India.
RuPay और UPI, सिर्फ कम लागत और अत्यधिक सुरक्षित टेक्नॉलजी भर नहीं है, बल्कि ये दुनिया में हमारी पहचान है। pic.twitter.com/X6OI6ikSeZ
— PMO India (@PMOIndia) March 7, 2023
Prime Minister Modi Has Called
Prime Minister Modi said in March 2023, “Rupay and UPI are not only affordable and extremely secure technology, but also our identity in the world. It has immense innovation potential. UPI has to be a medium of financial inclusion and empowerment for the whole world. And for this, we have to work collectively. I suggest that our financial institutions partner increasingly with fin-tech to increase their reach.”
Even in the meetings of the G-20 summit, India has put a lot of emphasis on the global acceptance of UPI. During this, in many speeches, Prime Minister Narendra Modi has called for the acceptance of UPI abroad.
