With the consistent efforts of the government, India has emerged as one of top countries in the segment of digital and (“Unified Payments Interface“) UPI transactions. Especially, payment via UPI becomes part and parcel of rotation and exchange of money in cash less transactions.
To further make it easy for foreign travelers to make merchant payments via UPI while they are travelling in India – New guidelines on the issuance and use of Unified Payments Interface (UPI) by foreign travelers and Non Resident Indians (NRIs) visiting India are issued by the Reserve Bank of India (RBI). Initially, travelers from G-20 nations are permitted to utilize this benefit at selected international airports. In course of time, the same will be extended to all points of entry into India.
The Group of Twenty (G-20) comprises India, Indonesia, Japan, Saudi Arabia, Australia, China, Republic of Korea, United States Brazil, Mexico, Russia, Argentina, Canada, United Kingdom France, Germany, Italy, South Africa, Turkey, and the European Union.
This RBIs latest ruling permitting the UPI merchant payment facility to foreign travelers and Non-Resident Indians coming to India can be attributed to the tourism development. Central government is making all efforts to develop all tourism spots identified with significant exposure to nature and to bring lifetime memories to the tourists.
This latest ruling relating to UPI is a crucial step towards opening the unexplored sync beauties of the nation to international travelers and further to make payments process easy for foreign travelers with the assistance of UPI.
Another interesting development is revision of the Master Directions on Prepaid Payment Instruments (PPIs) dated August 27, 2021 (updated as on November 12, 2021).
RBI guidelines for PPIs to foreign nationals/ NRIs visiting India
1) Foreign nationals and NRIs are permitted to get INR-denominated full-KYC PPIs from banks/non-banks authorized to issue PPIs subject to physical verification of passport and visa at counters authorized to issue PPIs.
2) PPIs issued are only permitted to use for merchant payments. Issuance of PPI can be carried by the form of wallets linked to PPI.
3) Only entities authorized under Foreign Exchange Management Act are permitted to perform conversion of PPI into rupees
4) It is mandatory for PPI issuers to maintain the record of PPI’s issued by such PPI.
5) PPIs limit of outstanding amount shall not go beyond the limit applicable on full-KYC PPIs
6) Unused balances in PPIs can be converted into foreign currencies or transferred back to the issuer of PPI subject to applicable laws.
India is one of first countries that adopted UPI based payment and able to successful push UPI reach from urban to remote rural areas. Undoubtedly, India made a place for itself in the UPI payment segment and this latest ruling will be another feather in its cap which can be used by the foreign travelers to their advantage.
It is hoped extending new UPI and PPI based payments facility to foreign travelers could open new commercial opportunities in the area of tourism and business for Indians.
