Unified Payments Interface or UPI has become the most trusted and used payment interface – used largely by Indians to make all types of payments. It is secure, fast and trusted and keeps you away from standing in the lines in banks or requests someone else to make payments. Indians who are living in different countries will get access to use UPI through their international mobile numbers. NRIs or Non-Resident Indians in 10 countries can access UPI services for transactions without having to depend on their India phone number. The countries are:
- United States of America or USA
- Hong Kong
- Saudi Arabia
One of the senior officials of National Payments Corporation of India (NPCI) remarks, “the Non Resident External or NRE and Non Resident Ordinary or NRO with their international mobile numbers can transact by using UPI”. Banks are ordered to follow and comply with the directions till April 30th 2023.
NRE account is for NRIs to help transfer foreign earnings to India; while the NRO is to manage the income earned in India.
Here, banks need to ensure that all accounts in the aforementioned categories are allowed as per the Foreign Exchange Management Act or FEMA regulations – flowing the guidelines of the Reserve Bank of India or RBI and guard against money laundering or terror financing.
In the last couple of days, PM approved INR 2600 Crore Scheme to promote RuPay Debit Cards and low-Value BHIM-UPI Payments options. The UPI payment options will help students, families living abroad and local businesses to stay away from worrying about the payment and transactions. Now, the banks will be allowed to provide financial incentives to promote transactions using RuPay and UPI.