Non-resident Indians (NRIs) will be able to access Unified Payments Interface (UPI) on their international mobile numbers. The National Payments Corporation of India (NPCI) has allowed NRIs living in 10 countries to use UPI using their international mobile numbers for bank accounts which are classified as Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts. ET Online explains all you need to know.
UPI on international mobile numbers for NRIs: What has changed
Until recently, an NRI would require a valid Indian mobile number to set up a UPI ID for any application. When a user activates UPI from an application, the app then sends an SMS from the number confirming that the mobile number is linked to the bank account.
So, those who moved overseas had to keep their Indian mobile numbers active, if they wanted to use UPI in India. It would come with the cost of maintaining the phone number and paying an amount to recharge it every month. Now, these NRIs can use UPI with their international or non-Indian mobile numbers. This move will eliminate the maintenance cost of keeping an Indian mobile number active for NRIs.
Which NRIs can use UPI with their international mobile numbers?
During the first phase of the roll-out, UPI can be used by NRI mobile numbers having country codes of Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, United Arab Emirates, and the United Kingdom, as per an NPCI circular released on January 10, 2023.
UPI on international mobile numbers: What are the conditions?
1) Mobile numbers of NRIs must be linked with NRO or NRE accounts to activate UPI with international mobile numbers.
2) Moreover, the NRE or NRO accounts should be Know your Customer or KYC compliant to activate UPI, Praveena Rai, COO of NPCI told ET Now.
The member bank where the customer has an NRE or NRO account must ensure that the required KYC is done and other necessary regulations including the Foreign Exchange Management Act or FEMA are followed, NPCI said earlier.
“The onus of compliance will rest with the respective banks. Member banks must ensure NRE or NRO accounts are only allowed as per the extant FEMA (Foreign Exchange Management Act) regulations and adherence to the guidelines/instructions issued by the concerned regulatory departments of the Reserve Bank of India (RBI) from time to time," according to NPCI circular released earlier.
"All necessary anti-money laundering (AML)/combating of financing of terrorism (CFT) checks and compliance validation/account level validations as per the extant rules applicable under the regulatory guidelines shall be the responsibility of the remitter/beneficiary banks," it added.
When does it come into effect?
NPCI has asked all the members to comply with this directive by April 30, 2023.
How will this move benefit NRIs?
"The major convenience factor would be in the form of ‘payment or money transfer convenience’ for NRIs when they visit India and can pay easily across millions of Indian merchants accepting UPI, thus, now they can do away with the use of their expensive international cards," said Vishwas Patel, Chairman, Payments Council of India and Executive Director, Infibeam Avenues Ltd said on the announcement.
"This will not only help NRIs use UPI when they travel to India but when UPI comes to merchants in the country of their residence they can start making instant transfers," said Mandar Agashe, Founder of Sarvatra Technologies, a banking technology solutions provider. "NRIs will just need to link their NRE and NRO accounts linked to their international SIM to UPI and use it like any other Indian UPI user for merchant payment as well as peer-to-peer payments," he added.
FAQs
Yes, fortunately for you, you can send money via UPI to India from the US. Currently, the National Payments Corporation of India (NPCI) allows international UPI transfers to India from the following countries: United States. Singapore.
How does UPI work internationally? ›
To make UPI payments outside India, one needs to enable international payments on the respective apps. For example, if you are using UPI via the PhonePe app, the same has to be enabled on the platform from the settings menu. Once enabled, one will be able to make UPI payments with ease in international locations.
Can I use Paytm with an USA phone number? ›
Paytm app only works in India.
Firstly, you can't even sign up for Paytm without a working Indian mobile number. And even if you have an existing account activated in India, you may not be able to log in to use the app or make a Paytm transfer when using the app outside India.
What are the benefits of UPI international? ›
Advantages of UPI for NRIs
- UPI transactions do not require the sender to input lengthy bank account details of the recipient. ...
- Lower cost of transactions.
- UPI provides enhanced security features, which is a critical aspect of any financial transaction.
Steps to send money using a UPI through Western Union
Choose to send using a bank pay out and use any payment method. Choose UPI ID under the bank information section. You'll be able to browse all the banks enabled for international UPI transfer. Choose to send your transfer, and you're all set!
Can a NRI account use UPI? ›
NPCI has enabled NRI account holders from ten countries to avail themselves of UPI payment services under specific conditions. Accountholders of both non-resident external ( 3 2Q4W3 4)/ non-resident ordinary (NRO) accounts can avail themselves of this service using their international mobile number.
Which bank supports UPI International? ›
Currently, the below banks support UPI International payments, HDFC Bank. Axis Bank. ICICI Bank.
How can NRI use UPI? ›
They can use their international mobile numbers to activate UPI by linking it with their NRE or NRO accounts. NRIs can use their international mobile numbers to activate UPI by linking them to their NRE or NRO accounts. Earlier, NRIs needed a valid Indian mobile number to set up a UPI ID for any application.
Can I use UPI when I am abroad? ›
Unified Payment Interface, commonly known as UPI, services are now available in multiple countries other than India. These include Sri Lanka, Mauritius, Bhutan, Oman, Nepal, France and UAE.
How to activate UPI from outside India? ›
To activate UPI International, Tap your profile picture on the PhonePe app home screen. Tap International under the Payment Management section. Tap Activate next to the bank account from which you want to make international UPI payments.
- First and foremost, an NRI needs an active bank account in India. - An Indian mobile number is also required, which will be linked to the UPI account. - Example: Let's assume Nisha, an NRI residing in the USA, has a bank account with a well-known bank in India and a registered Indian mobile number.
Can a NRI account use Google Pay? ›
Be it google Pay, Paytm, or any other UPI-supporting app, you will need to log in with your international mobile number, add your bank account, and there you go you can make UPI payments and transactions. But note that your international number must be linked with your NRE/NRO bank account.
Can I use the USA number for PhonePe? ›
Typically, users need an Indian bank account and an Indian mobile number to register and use the PhonePe app. If your uncle is in the USA with a different mobile number and bank account, he may face limitations in using PhonePe directly. Additionally, international transactions might not be supported.
Can UPI ID be used internationally? ›
When you travel abroad, you can use UPI International to pay international businesses by scanning a QR code, as explained above. However, this provision is not intended for outward remittances from India. As of now, sending money out of India through UPI is not yet available for consumers, but it's coming very soon.
Can you use UPI internationally? ›
It is to be noted that users can activate international transactions for bank accounts that support UPI International. Furthermore, the debit from the bank account is in Indian currency, which means the foreign exchange conversion rate and bank fee will be applicable on making the transactions.
Can you do UPI from abroad? ›
The Government of India has made UPI payments available in many international countries, to make transactions easier for Indians who are planning to travel abroad. This service could also be used by the Non-Resident Indians (NRIs) for making any international transactions.
Can foreign citizens use UPI in India? ›
Inbound travellers (foreign nationals/NRIs) will be able to get UPI One World (PPI on UPI) from PPI Issuers at any location which is permitted to perform money exchange operations in accordance with RBI / FEMA guidelines.
