NPCI allows NRIs to access UPI with International Mobile Numbers; Who can use it and How?

Non-resident Indians (NRIs) will now be able to use their overseas mobile numbers to access the Unified Payments Interface (UPI). The National Payments Corporation of India (NPCI) has permitted NRIs living in ten countries to use UPI for bank accounts classed as Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts. This approach will reduce the cost of maintaining an Indian cellphone number for NRIs.

What has changed with UPI on international mobile numbers for NRIs?

Until recently, setting up a UPI ID for any application required an NRI to have a valid Indian mobile phone. When a user activates UPI through an app, the app sends an SMS from the number to confirm that the mobile number is linked to the bank account.

Those who relocated abroad have to maintain their Indian cell numbers current in order to utilise UPI in India. It would come with the cost of keeping the phone number and paying a monthly fee to recharge it. NRIs can now utilise UPI with international or non-Indian mobile numbers. This approach will reduce the cost of maintaining an Indian cellphone number for NRIs.

Which NRIs are eligible to use UPI with their international phone numbers?

According to an NPCI circular issued on January 10, 2023, NRI mobile numbers with country codes of Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, United Arab Emirates, and the United Kingdom can utilise UPI during the initial phase of the rollout.

What are the prerequisites for using UPI on international mobile numbers?

• To activate UPI with overseas mobile numbers, NRIs’ mobile numbers must be linked to their NRO or NRE accounts.
• Furthermore, in order to activate UPI, NRE or NRO accounts must be Know Your Customer (KYC) compliant, according to Praveena Rai, COO of NPCI.

According to NPCI, the member bank where the customer holds an NRE or NRO account must verify that the appropriate KYC is completed and that other applicable rules, such as the Foreign Exchange Management Act or FEMA, are followed.

The responsibility for compliance will be on the individual banks. Member banks must make sure that NRE or NRO accounts are only permitted in accordance with the current FEMA (Foreign Exchange Management Act) regulations and adherence to the guidelines/instructions issued by the concerned regulatory departments of the Reserve Bank of India (RBI) from time to time, according to an NPCI circular that was previously published.

“All necessary anti-money laundering (AML)/combating financing of terrorism (CFT) checks and compliance validation/account level validations as per the extant rules applicable under the regulatory guidelines shall be the responsibility of the remitter/beneficiary banks,” the statement continued.

When does it come into effect?

NPCI has requested that all members comply with this direction by April 30, 2023.

How will this move benefit NRIs?

According to Vishwas Patel, Chairman, Payments Council of India and Executive Director, Infibeam Avenues Ltd, “the major convenience factor would be in the form of ‘payment or money transfer convenience’ for NRIs when they visit India and can pay easily across millions of Indian merchants accepting UPI, they can now do away with the use of their expensive international cards.”

“This will not only help NRIs use UPI when they travel to India, but when UPI comes to merchants in the country of their residence, they can start making instant transfers,” said Mandar Agashe, the founder of Sarvatra Technologies, a company that offers financial technology solutions. “NRIs will just need to link their NRE and NRO accounts linked to their international SIM to UPI and use it like any other Indian UPI user for merchant payment as well as peer-to-peer payments,” he continued.