In recent years, India has emerged as one of the world's
fastest-growing economies, with an increasing number of international travelers
visiting the country for business or leisure purposes. With the rise in the
number of travelers, there is a growing demand for a fast, secure, and
efficient payment system that caters to their needs. In this regard, the
Reserve Bank of India (RBI) has introduced guidelines for the use of Unified
Payment Interface (UPI) for international travelers.
The Reserve Bank of India (RBI) recently announced
guidelines for the use of Unified Payment Interface (UPI) for international
travelers. This move is aimed at simplifying the process of making payments for
goods and services availed by travelers outside India. Here’s what you need to
know about the RBI guidelines on UPI for international travelers.
What is UPI?
The UPI is a payment system developed by the National
Payments Corporation of India (NPCI) that allows users to transfer money
instantly between bank accounts through a mobile device. It is a popular
payment option for domestic transactions, and now, the RBI has allowed its use
for international travelers as well.
As per the guidelines, international travelers can use UPI
to make payments for various services such as hotel accommodation, food, and
shopping. The payments can be made in Indian rupees, and the UPI can be used
both for one-time and recurring payments.
To use UPI for international transactions, the traveler must
have a bank account in India and a UPI ID linked to that account. The UPI ID
can be generated through the bank's mobile app or any UPI-enabled app such as
Google Pay, PhonePe, or Paytm. The traveler must also ensure that their bank
account is linked to their PAN card and Aadhaar card.
One of the significant advantages of using UPI for
international transactions is its security features. UPI transactions are
protected by two-factor authentication, which means that the user must enter a
unique OTP (One Time Password) to complete the transaction. Additionally, UPI
transactions are also protected by the bank's security protocols.
UPI for International Travelers and NRIs: Physical
verification of passport and visa is required.
RBI gives instructions on 10th February 2023, Reserve Bank
of India (RBI) has issued Regulations on Issuance and Use of Unified Payments
Interface (UPI) by International Visitors and Non-Resident Indians (NRIs) to
India. The central bank recently made UPI Merchant Payments service available
to international visitors to India and NRIs. On 8 February 2023, RBI Governor
Shaktikanta Das , commenting on the completion of the bi-monthly Monetary
reported on 8 February 2023, stated that all inbound passengers to India will
be plan to allow UPI to be used for merchant payments (P2M).
Initially, this UPI service will be available to G-20
travelers arriving at certain international airports. The central bank has
issued specific instructions on February 10, 2023 for issuing his UPI to
international travelers.
Prepaid Payment Instruments (PPI) Guidelines for
Foreigners/Non-Resident Indians (NRIs) Visiting India
1) Banks/non-banks authorized to provide PPI can issue full
KYC PPI in INR to foreigners/NRIs visiting India expanded to travelers from 20
countries). Such PPIs can also be issued as part of a co-branding agreement
with firms that are FEMA-authorized to deal in foreign exchange.
2) PPI is granted upon physical verification of your
passport and visa at the time of issuance. According to the central bank, PPI
issuers ensure that this information and records are kept.
3) PPI can be issued as a UPI-linked wallet and can only be
used for merchant payments (P2M).
4) Replenishment or
reloading of such PPI is dependent on receipt of foreign exchange by cash or
payment mechanism.
5) Only companies licensed to trade foreign exchange under
FEMA as defined by RBI are allowed to convert to Indian Rupees.
6) Such PPI balance should never exceed the limit applicable
to full KYC PPI, it noted.
7) According to the
central bank, any unused balance of such PPI could be paid in foreign currency
or remitted to the "source" (the payee with the PPI loaded) under
foreign exchange laws.
Can a foreign visitor use her UPI in India?
International
visitors from G-20 countries can now make retail payments in India using the
Unified Payments Interface (UPI). The Reserve Bank of India (RBI), in its
Statement on Development and Regulatory Policy dated 8 February 2023, announced
that all visitors entering India will be required to pay locally through the
Unified Payments Interface (UPI) while in India. We announced a feature that
allows you to make payments. This facility is now accessible," the RBI
announced in a statement on February 21, 2023.
Who is eligible for this service?
Initially, UPI will be offered to foreign travelers from
G-20 countries arriving at certain international airports in India. Group of 20
(G-20) consists of Argentina, Australia, Brazil, Canada, China, France,
Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi
Arabia, South Africa, Turkey, United Kingdom and United States, also the
European Union that's right.
Where can foreign travelers use this service?
UPI for foreign travelers will initially be offered at three international airports in Bangalore,
Mumbai and New Delhi. That option will eventually be offered at other entry
points across the country, according to RBI Governor Shaktikanta Das.
Who can create a UPI-linked PPI wallet for outbound
travelers?
Initially, UPI-linked wallets will be issued by ICICI Bank,
IDFC First Bank, and his two non-bank PPI issuers, Pine Labs Private Ltd and
Transcorp International Limited. According to RBI, this option will also be
offered to participants from the G20 countries at various summit locations.
Can a Payments be made via QR code based UPI payments.
Visitors to India can now avail simple UPI payments at 50+ million merchants across
the country accepting QR code based UPI payments.
What the RBI had Proposed?
In its development and regulatory policy announcement dated
8 February 2023, RBI recommended UPI payment mechanism for foreign tourists
visiting India. The announcement read: Now, it is proposed that all visitors
entering India can use UPI for merchant payments (P2M) while in the country. ,
To begin, this service will be available to G-20 travelers arriving at certain
international airports. RBI's proposal aims to increase the use of digital
payments in the country and provide a smoother payment experience for visitors to
India. Her UPI payment service for foreign travelers to India is a big step
forward and aims to help both travelers and merchants.
.jpg)
