RBI authorizes the use of mobile-based UPI payments for travelers from G20 countries
The Reserve Bank on Friday issued instructions allowing travelers from G20 countries to use the mobile-based Unified Payments Interface (UPI) to make payments in India.
UPI is a system that consolidates multiple bank accounts into a single mobile application, merging multiple banking features, seamless fund routing, and merchant payments under a common platform.
On Wednesday, the RBI had made an announcement regarding granting access to UPI to foreign nationals and NRIs visiting India.
For starters, he said the facility would be extended to travelers from G20 countries at select international airports for their merchant (P2M) payments while in the country. Later, it will be activated in all entry points of the country.
“Banks/non-banks licensed to issue PPIs can issue full INR-denominated KYC PPIs to foreign nationals/NRIs visiting India (to begin with, this facility will be extended to travelers from G-20 countries, arriving in some international airports),” he said in a circular.
These prepaid payment instruments (PPIs) may also be issued under a co-branding agreement with entities licensed to trade foreign currencies under FEMA, the circular says.
“PPIs can be issued as UPI-linked wallets and can only be used for merchant (P2M) payments,” he added.
The instructions entered into force with immediate effect.
He further stated that PPIs would be issued after physical verification of customers’ passports and visas at the point of issuance.
“The loading/reloading of these PPIs will be against receipt of currency in cash or by any payment instrument,” the RBI said.
Unused balances of these IPPs can be cashed in foreign currencies or transferred “at source”.
The G20 or Group of 20 is an intergovernmental forum of the world’s major developed and developing economies.
It includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, USA and Europe. European (EU).
Payment transactions via UPI increased by 1.3% on the month to a high of nearly Rs. 13 lakh crore in January.
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