Introduction to UPI:
UPI stands for Unified Payments Interface. The structure is developed by the National Payments Corporation of India for making digital payments. It allows its users to transfer money between one bank account to the other instantly using a mobile device at anytime and anywhere without personally visiting a bank. UPI has revolutionized the way people in India make payments, and it has contributed to the growth and digital economy of India. Many other benefits like bribery reduction, cashless transaction are possible with digital payment system. Now NPCI is also working to make UPI international for payments in abroad.
Here are some reasons why UPI can make India a global leader in banking:
Financial Add-on:
UPI has made it easier for people in urban areas and small towns to access banking services and digital payments. This has led to financial inclusion, which is vital for economic growth.
Cashless Economy:
UPI has helped to reduce the use of cash in the Indian economy. This has several benefits, including reducing bribery in financial transactions, reduction of black money ETC
Increased Productivity:
UPI has made financial transactions faster and more efficient. This has saved time for business and individuals.
International Acknowledgement:
UPI has gained global recognition as a successful digital payment system. This has put India on the map as a leader in digital payments and technology.
Therefore, UPI has the potential to make India a superpower by promoting financial inclusion, reducing cash usage, increasing efficiency. Now government is planning to make UPI as international.
How UPI became international?
There is really wonderful news for the citizens of India about the partnership between France and India. Now UPI will operate in France! On July 14th (Bastille Day), this day is celebrated as a very special day in France, on this occasion, Indian Prime Minister, Shree Narendra Modiji was invited to France. On this historic day, an important partnership unveiled to the public about digital payments in France using UPI. Now India tourists can make payment using UPI at Eiffel Tower. This proves that India’s digital payment system can work flawless with international banks. With this, we can demonstrate and convince European banks that UPI can seamlessly work with their banks too.
Need for international UPI requirements:
Right now there are only three options available to make transactions abroad by Indian tourist, Number one, tourist can carry foreign currency and convert Indian rupees into the currency of that country while travelling. Number two is buy a Forex card. Conversion rates for both the methods used to be high and in favor of banks. Which means while buying from the market, one hast to pay more than exchange rate and while selling to the vendors, one has to sell at lower price than the exchange rate. In both cases, one has to pay more rates. And the third option is of using international debit/ credit cards. In this method the markup charge on such transections are as high as 1% to 3.5%. Therefore payments made through UPI will solve the problem of high exchange and markup rates.
How India put UPI on International display?
India is president of G20 in the year 2023. Taking its advantage, India showed how smooth and efficient UPI is to every guest who is coming for G20 to India. And made them believe the UPI payment method is fast, convenient, and seamless.
Countries with UPI partnership:
Identifying opportunities, there are many banks and financial companies all set to do partnership with UPI in order to exchange funds seamlessly. Following are some countries that are making UPI as their paying partners,
Russia,
Thailand,
UAE,
Singapore,
United Kingdom, and
Oman
All those partners will accept payment system of UPI. There was an important agreement between Singapore and India, for cross border payment system enabling. This will help to vendors for their business payments through UPI, they can order from Singapore Company using UPI. Currently there is limit set for the transaction between India and Singapore of rupees 30,000 per day
Conclusion:
Other countries in the world export products where India will export a system. This will be economic revolution. Foreign moneys will come to India more. And this development will prove that UPI can seamlessly make transaction without paying large conversion rates. It will make good relations with the foreign countries.