How RBI works with other countries to make UPI global
What's the story
The Reserve Bank of India (RBI) is partnering with multiple countries, to globalize the Unified Payments Interface (UPI), as revealed in the Economic Survey 2023-2024. The bank's objective is to improve efficiency in cross-border payment systems. Notably, RBI has become a part of Project Nexus. It is an international initiative aimed at integrating India's Fast Payments System (FPS), or UPI, with their respective FPSs, for cross-border person-to-person and person-to-merchant payments.
Motive
What does Project Nexus entail?
The goal of Project Nexus is to link the FPSs of four ASEAN countries — Malaysia, Philippines, Thailand, and Singapore, with India. "Once functional, Nexus is expected to play an important role in making retail cross-border payments efficient, faster, and more cost-effective," according to the survey.
Global reach
UPI payments now accessible in multiple countries
The survey indicates that Indians can now utilize UPI payments, including the popular scan-and-pay method, in many countries across South Asia, Southeast Asia, and Europe. The government's motive is to replace card payments by Indians in these countries for merchant transactions, and substitute other corporate channels for international remittances. This expansion aims to streamline cross-border person-to-person and person-to-merchant transactions.
Transaction growth
UPI transactions surpass 100 billion mark in 2023
In 2023, transactions through the UPI platform exceeded the 100 billion mark, closing at around 118 billion. The platform currently processes around 12 billion transactions a month. The National Payments Corporation of India (NPCI), which operates UPI, is aiding other countries in establishing digital infrastructure for a real-time payment system similar to UPI. This initiative will facilitate India's connection with their FPS and foster goodwill with emerging economies.
Global collaborations
UPI's global success leads to international collaborations
The success of UPI in India, has led to global collaborations across several countries. For instance, UAE-based Al Maya Supermarket now accepts UPI-based payments across its outlets. Ajay Kumar Choudhary, Non-executive Chairman and Independent Director at NPCI, announced that UPI has gone global and is now offered at the Eiffel Tower in Paris, the Galeries Lafayette's flagship store in Haussmann ahead of the Paris Olympics, and certain countries in the Middle East.