UPI goes global, onboards NRI accounts

With the success in India, it is now enabling people with non-resident external (NRE) or non-resident ordinary (NRO) accounts.

New Delhi, Jan 11: Unified Payments Interface (UPI) has been receiving accolades for its massive success in transforming the way India transacts. The payment technology developed by the National Payments Corporation of India (NPCI) has helped the country revolutionize payment technology. With the success in India, it is now enabling people with non-resident external (NRE)/ non-resident ordinary (NRO) accounts.

According to a report published in the Business Standard NPCI has instructed members of the UPI ecosystem to further expand its spread. Now, people with non-resident account types that inter alia include NRE and NRO accounts can transact using UPI.

However, only the individuals with international mobile numbers from the select countries would be able to utilize the feature. This is being done as a part of a mission to build a huge acceptance network for RuPay and UPI so that Indian travellers could use India's advanced payment technology around the world.

Strict adherence to FEMA rules

There are a lot of risks involved with allowing UPI payments and to reduce them further NPCI has put certain conditions. The report also states that all the transactions would be subject to the fact that the member banks will open the accounts only after following the rules and regulations like Foreign Exchange Management Act (FEMA).

Additionally, apart from following the FEMA rules the banks must be following each and every regulations and adherence that come out regularly from the Reserve Bank of India. Needless to say the NPCI has made it clear that the UPI ecosystem members must comply with its directions by April 30, this year.

Anti-money laundering measures

UPI transactions that are the easiest payment tools would enable swift international payments; however, there are several risks involved including money laundering. Therefore, the NPCI has also made it clear that all necessary anti-money laundering checks and balances are in place.

Needless to say UPI transactions would not be used for funding or financing terrorism or other contraband activities. For the beginning NPCI has enabled UPI transactions from mobile numbers that come from countries like Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE, and the UK,

Interestingly enough Indian travellers to Europe were already using UPI payments after NPCI and the UAE-based Mashreq Bank's NEOPAY entered into a partnership. The new partnership that was signed earlier last year allowed tourists and migrants to the UAE with Indian bank accounts to pay using UPI.