India’s Unified Payments Interface (UPI) technology is set to make its mark in Sri Lanka as it will now be accepted there. The announcement came as several agreements were exchanged between India and Sri Lanka, witnessed by Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe in the national capital.
The UPI payments system has gained immense popularity in India for retail digital transactions, and its influence is rapidly spreading globally. Notably, India has already collaborated with France, UAE, and Singapore on emerging fintech and payment solutions.
UPI is a mobile-based fast payment system in India that allows customers to make round-the-clock instant payments using a unique Virtual Payment Address (VPA).
In February 2023, India and Singapore signed an agreement to link their respective payment systems, enabling users in both countries to conduct cross-border transactions. This seamless integration allows people to send money in real-time through QR-code-based methods or simply by entering mobile numbers linked to their bank accounts.
Similarly, France also agreed to adopt the UPI payment mechanism earlier this month, starting at the renowned tourist destination, the Eiffel Tower.
An essential Memorandum of Understanding (MoU) was also exchanged between the Reserve Bank of India (RBI) and the Central Bank of the UAE. This move aims to interlink the payment and messaging systems, facilitating the integration of India’s UPI and the UAE’s Instant Payments Platform (IPP).
India’s fintech ecosystem has seen rapid growth, thanks to the government’s efforts to globalize the country’s digital payment infrastructure. The Indian authorities have been actively working to extend the benefits of UPI beyond the nation’s borders, making it available for other countries to leverage.
To this end, the RBI has proposed permitting all inbound travelers to India from G20 countries to use UPI for their merchant payments while they are in the country. This facility will be accessible at select international airports, as reported by ANI.
RBI Governor Shaktikanta Das made this announcement on February 8 during the outcome deliberation of the three-day monetary policy committee meeting.
With these strategic partnerships and collaborations, India continues to lead the way in fintech innovation, and the adoption of UPI technology in Sri Lanka is a testament to its growing global influence.