The Reserve Bank of India (RBI), in collaboration with NPCI International Payments Ltd. (NIPL), is set to expand the reach of the Unified Payments Interface (UPI) to 20 countries by the fiscal year 2028-29.
This ambitious initiative aligns with India’s goal of becoming a developed nation by 2047, as outlined in the RBI’s recent annual report. The global expansion of UPI and RuPay cards is a key objective under the internationalization pillar of the Payments Vision Document 2025.
A Strategic Vision for Global Payment Integration
The RBI’s strategic vision emphasizes enhancing the global footprint of UPI and RuPay, with a targeted initiation timeline beginning in 2024-25. The collaboration with NIPL aims to foster partnerships and integrate UPI with the fast payment systems (FPS) of other nations.
The report highlights the exploration of collaborative arrangements with regions such as the European Union and the South Asian Association for Regional Cooperation (SAARC), alongside multilateral linkages, to bolster cross-border payment systems.
The Payments Vision Document 2025 underscores the importance of internationalizing India’s digital payment systems to facilitate seamless transactions for Indian travelers abroad and to support the growing demand for digital payments among foreign visitors to India.
As part of this initiative, the RBI is engaging in discussions with various central banks to establish cooperative arrangements that will enable the interoperability of payment systems across borders.
Milestones in International Payment Integration
Recent developments illustrate the significant strides being made towards international payment integration. In July 2023, the RBI signed a memorandum of understanding (MoU) with the Central Bank of the UAE (CBUAE) to interlink their payment infrastructures.
This agreement includes the integration of India’s UPI with the UAE’s Instant Payment Platform (IPP), known as Aani. Additionally, the MoU covers the linkage of the respective card switches of both countries: RuPay switch and UAESWITCH. This further enhances the interoperability of payment systems.
The successful launch of UPI and RuPay card connectivity between India and Mauritius in February 2024 marks another milestone. This connectivity enables Indian travelers in Mauritius to make payments using UPI apps. Similarly, Mauritian travelers can do the same in India using their local instant payment system apps.
This bilateral integration is set to simplify cross-border transactions and promote tourism and business exchanges between the two countries.
Similarly, in February 2024, India and Sri Lanka established UPI connectivity. This allows Indian travelers to make QR code-based payments at merchant locations in Sri Lanka using UPI apps.
This initiative not only facilitates convenience for travelers but also strengthens economic ties between India and Sri Lanka by streamlining payment processes.
In another significant development, the Reserve Bank of India and Nepal Rastra Bank are exploring the linkage of the UPI platform with Nepal’s National Payments Interface to enable cross-border payments.
In June 2023, NPCI International Payments Ltd. signed a memorandum of understanding. (NIPL) and Nepal Clearing House Ltd. (NCHL) to advance this objective. This collaboration aims to enhance financial inclusion and digital payment adoption in both countries.
Expanding Global Outreach
India’s UPI system has already garnered international acceptance, with QR code-based merchant payments being operational in France and Nepal. India currently has payment system tie-ups with seven countries. This reflects the growing global recognition of UPI as a reliable and efficient payment solution.
The expansion of UPI to 20 countries by 2029 will revolutionize the global payments landscape. This move will offer Indian expatriates and international travelers a seamless and secure payment experience.
By fostering collaborations and integrating payment systems across borders, the RBI and NIPL are enhancing the convenience of digital transactions. Moreover, they are contributing to the broader goal of a digitally empowered and financially inclusive global economy.
The RBI’s commitment to expanding the global footprint of UPI and RuPay cards signifies a transformative step towards realizing the vision of Viksit Bharat 2047.
India’s ongoing efforts to forge international partnerships and harness technological advancements bode well for the future of cross-border payments. This potential holds promise for driving economic growth and enhancing global financial connectivity.
