UPI for NRIs- Facilitating Digital Transactions in India

The Unified Payments Interface (UPI) has transformed India’s payment ecosystem and benefits Non-Resident Indians. NRIs can easily handle financial transactions with UPI such as mobile recharges and online shopping in India. This innovative system bridges distances and enables NRIs to manage their Indian financial concerns securely and effectively. With the help of UPI, you can even grab cheap flights to India from Canada through TripBeam.

Why is introducing UPI for NRIs a BIG DEAL?

The UPI network is a SIM binding system which was previously available for Indian SIM card phones. The following are the reasons why providing UPI for NRIs is considered a significant step:

1. When you purchase Business class flight tickets to India, UPI will benefit families living abroad, international students, and local businesses by offering seamless digital transactions and enhanced convenience.
2. This facility will shift the focus of this instant real-time payment system from peer-to-peer to more peer-to-merchant transactions.
3. NRIs can use UPI payments by linking their NRE and NRO accounts to their international SIM cards. You should also check Savings Account Tips for NRIs for a better understanding.
4. There are no additional charges for account holders.

Benefits of UPI for NRIs:

Listed below are some of the advantages of introducing UPI for NRIs:

• UPI transactions expedite the procedure by eliminating the need to provide lengthy recipient bank account information. Instead, users can use a UPI ID, QR code, or phone number, which greatly reduces the possibility of error.
• Lower transaction costs compared to other methods.
• UPI provides enhanced security features, which are critical for securing financial transactions. Using two-factor authentication adds a layer of protection to UPI transactions, making them more secure than some other traditional techniques.

How does an NRI complete a UPI transaction?

Follow the steps outlined below to make a UPI payment as an NRI:

Step 1:– Make sure you have an NRO or NRE account with an Indian bank that supports UPI transactions.

Step 2:– Register your overseas mobile number with your bank account. It is essential because UPI apps use mobile numbers for verification.

Step 3:– Several Indian banking apps and third-party platforms like Google Pay, PhonePe, and Paytm support UPI transactions.

Step 4:– Download and install your selected UPI app on your smartphone. During setup, verify your mobile number. If you’re living abroad, check if the app allows verification with your foreign number. If not, you might need to use an Indian number temporarily for setup.

Step 5:– Link your NRO/NRE account to the UPI app. It usually involves selecting your bank from a list and letting the app automatically retrieve your account details using your registered mobile number.

Step 6:– Set a UPI Personal Identification Number for transactions. It typically involves entering a one-time password sent to your registered mobile number and then creating a UPI PIN.

Step 7:– Once setup is complete, you can start using UPI for payments and transfers. You can transfer funds to other UPI users, pay bills, or make online purchases.

How Will this Work?

The NPCI has announced that NRIs can now use UPI transactions through mobile numbers with the country codes of ten specified nations. Here’s how this new UPI service will work for NRIs:

• Registration:– NRE or NRO account holders must register for the service using their international mobile numbers.
• Regulatory Compliance: Partner banks must ensure the accounts comply with the Foreign Exchange Management Act (FEMA) regulations.
• Validation: Both remitter and beneficiary banks must perform the necessary validations to prevent money laundering or terrorism financing.
• Security Checks:– Transaction-level and onboarding checks will be applied to all accounts following existing UPI guidelines.

Which Countries Will Support this New Facility?

The new UPI facility for NRIs supports countries including Hong Kong, Canada, Australia, UAE, Singapore, UK, Saudi Arabia, Oman, USA, Qatar, Germany, Malaysia, Netherlands, France, South Africa, and New Zealand.

Conclusion

The introduction of UPI has eased how NRIs manage their financial obligations in India. As the platform matures, it is planned to provide even more specialized services to the NRI community, improving their ability to remain financially connected to their home country.

Lastly, while booking your last minute flights from Canada to India, use the UPI app and make your payment without any hassle.