UPI International Linkage

UPI’s success in India has prompted efforts to enable its usage in other countries. UPI International refers to the expansion of UPI’s acceptance and interoperability beyond India’s borders. This involves allowing Indian bank account holders to make or receive payments via UPI when they travel abroad, as well as potentially linking UPI with other countries’ payment systems for cross-border transactions. As of 2025, several countries have partnered with NPCI’s international arm – NPCI International Payments Ltd (NIPL) – to accept UPI payments or link their systems with UPI.

Countries where UPI is Accepted

Indian travelers can now use their UPI apps in a number of countries to pay local merchants directly from their Indian bank accounts. Notably, Bhutan was the first country to adopt UPI payments (in 2021), allowing QR-based UPI transactions at merchants via the BHIM app. Singapore linked its domestic fast payment system (PayNow) with UPI, enabling person-to-person and merchant payments between the two countries. In the United Arab Emirates (UAE), tens of thousands of retail outlets (including in Dubai malls and airports) now accept UPI payments from Indian customers. France became the first European country to embrace UPI (starting 2023), initially rolling out UPI acceptance at popular tourist locations like the Eiffel Tower. Nepal has integrated UPI through its payment network (Fonepay), facilitating UPI payments for Indian tourists in Nepal. Other countries that have enabled UPI-based payments include Bhutan, Singapore, UAE, France, Nepal, Sri Lanka, and Mauritius, with more on the way.

How International UPI Works?

The international expansion of UPI is made possible through partnerships and technical linkages orchestrated by NIPL. In simple terms, NPCI/NIPL signs agreements with foreign counterparts (banks, payment networks, or central banks) to allow interoperability. For example, in Bhutan and UAE, local banks and acquirers have partnered with NIPL so that Indian UPI QR codes or apps can be recognized at point-of-sale terminals. When an Indian user scans a merchant’s QR code abroad (or initiates a payment to a foreign mobile number linked to a UPI-like system), the transaction request travels through NIPL’s network, converts currency as needed, and routes to the local country’s payment network. The currency conversion is handled seamlessly: the Indian user’s bank deducts funds in INR, while the merchant or recipient abroad receives payment in their local currency. Banks apply standard foreign exchange conversion rates and may charge a small forex markup, but this is typically more competitive than card transaction fees. Crucially, the user does not need an international card or to hold foreign currency – their familiar UPI app debits their Indian bank account, and the rest is taken care of by the payment networks.

From a user’s perspective, paying via UPI overseas is as simple as scanning a QR code or entering a UPI ID. For instance, an Indian tourist in Qatar can shop at certain stores and pay by scanning the UPI QR code at checkout, deducting money from their Indian account in rupees while the store receives the payment in Qatari riyals. This convenience is a boon for the large Indian diaspora and travelers, as it eliminates the need to carry cash or exchange currency for small purchases. It also promotes India’s digital payment standards abroad as a form of “payments diplomacy”.

NIPL and Partnerships

NPCI International (NIPL) has been instrumental in forging UPI linkages globally. It has signed Memoranda of Understanding (MoUs) and agreements with various entities to spread UPI. For example, NIPL partnered with Liquid Group of Singapore to pave the way for UPI QR acceptance in multiple Southeast Asian countries. NIPL also signed an MoU with the Arab Monetary Fund’s payment platform (Buna) to facilitate UPI integration in West Asia and the Gulf region. These collaborations set up the infrastructure such that UPI transactions can be routed across borders securely. In each country, compliance with local regulations (such as obtaining necessary approvals from central banks) is ensured. For instance, the UPI-PayNow link is jointly overseen by the Monetary Authority of Singapore and the RBI, and UPI acceptance in UAE or France involves working with licensed payment aggregators/acquirers in those countries. NIPL’s role is to export India’s real-time payments technology and establish mutual acceptance – sometimes this is one-way (Indian tourists paying abroad), and in other cases two-way (enabling cross-border remittances).

Below is a list of countries and regions where UPI has been enabled, either for merchant payments or cross-border transfers, along with key details:

• Bhutan – First country outside India to adopt UPI; enabled BHIM UPI QR payments for Indian visitors in 2021.
• Nepal – Linked UPI with Nepal’s Fonepay network; allows UPI payments at Nepali merchants (launched 2021, expanded in 2024).
• Singapore – Integrated PayNow (Singapore’s fast-pay system) with UPI for real-time person-to-person and merchant payments (live in 2023–24).
• United Arab Emirates (UAE) – Over 60,000 stores, malls, and airports in UAE now accept UPI QR payments, benefiting Indian tourists and NRIs (rolled out in 2023).
• France – First European adopter; UPI payments accepted at tourist spots (e.g. Eiffel Tower) and by merchants, via partnership with Lyra Network (introduced 2023).
• Sri Lanka – Enabled UPI at select locations (like supermarkets, airports and tourist hubs) to facilitate Indian travelers (started in 2024).
• Mauritius – UPI and RuPay card acceptance launched to support tourism and remittances between India and Mauritius (UPI live by 2022 for RuPay, expanded to UPI in 2024).

UPI–PayNow Integration (India–Singapore Corridor)

One of the landmark developments in UPI’s international expansion is the linkage between India’s UPI and Singapore’s PayNow system. PayNow is Singapore’s instant payment system that, like UPI, enables quick fund transfers using identifiers (such as mobile numbers or NRIC).

The UPI–PayNow linkage went live in February 2023, creating a real-time cross-border remittance corridor between Singapore and India. This is among the first of its kind globally, connecting two countries’ fast payment networks to simplify person-to-person remittances.

Features of the Linkage

The UPI-PayNow integration allows individuals in India and Singapore to send money to each other using just their mobile phones, in a manner as easy as domestic UPI or PayNow transactions. A user in India can use their UPI app to send money to a recipient in Singapore by entering the recipient’s Singapore mobile number (which is their PayNow ID).

Conversely, a user in Singapore can send funds to India by entering the UPI ID of the Indian recipient. The funds are transferred almost instantly and are settled in the respective local currencies (Indian Rupee or Singapore Dollar) with conversion handled automatically behind the scenes. The service is available 24×7, and transactions typically complete within under a minute, similar to domestic UPI transfers.

Participating Banks and Apps

Initially, a set of banks on each side were enabled for this cross-border remittance. On the Indian side, banks such as State Bank of India, Indian Bank, Indian Overseas Bank, ICICI Bank, Axis Bank, and DBS Bank India were among the first participants. These banks allow their account holders to receive funds from Singapore into Indian accounts via UPI. For sending money from India to Singapore, the service initially was available through banks like ICICI Bank, Indian Bank, Indian Overseas Bank, and SBI using their mobile apps or internet banking. For example, an SBI customer could use the BHIM SBI Pay app to remit money to Singapore. On the Singapore side, at launch, DBS Bank Singapore (along with its subsidiary POSB) was a key participant, and a non-bank financial institution called Liquid Group also joined to facilitate transfers via their platform. Singapore users from these institutions can send/receive funds through PayNow linked to UPI. Over time, more banks are being added to broaden access.

Transaction Limits and Use Cases

To ensure smooth implementation, a daily transaction limit of ₹60,000 per user (approximately SGD $1,000) has been set for the UPI-PayNow corridor. This means an individual can send or receive up to ₹60,000 in a day through this linkage. The limit aligns with typical personal remittance needs and also conforms to regulatory requirements in both countries. Currently, the permitted use of this facility is focused on person-to-person (P2P) remittances.

According to RBI guidelines, the transfers are allowed for personal maintenance or gift purposes between individuals (under the Liberalised Remittance Scheme for India). In practical terms, this covers scenarios like an Indian expatriate in Singapore sending money home to family for living expenses, or an Indian parent sending funds to a student studying in Singapore as a gift/maintenance. At the moment, business or trade payments are not part of this linkage – it is purely aimed at low-value personal remittances, which form a significant portion of India–Singapore cross-border transactions.

Process Flow

From the user’s perspective, sending money via UPI-PayNow is straightforward. Suppose an Indian user wants to send money to a friend in Singapore: they would open their UPI app, choose the UPI-PayNow option (after ensuring their bank/app is enabled for international transfer), and enter the Singaporean’s PayNow-linked mobile number and the amount. The UPI app will show an estimated conversion (since the Indian user will pay in INR and the recipient will get SGD).

Once confirmed, the sender authorizes the transaction with their UPI PIN. The money is then instantly debited from the Indian bank account, converted to Singapore Dollars through the network’s forex mechanism, and credited to the recipient’s bank account in Singapore via PayNow.

The recipient in Singapore simply receives a PayNow notification (just as if someone domestically sent them money) and the funds in SGD. The reverse direction works similarly – a Singapore user can send money to India using their PayNow app by entering the Indian recipient’s UPI ID (typically a UPI ID mapped to that person’s bank/phone). The linked systems take care of routing and currency exchange. This eliminates the need for traditional wire transfers or money transfer operators for small remittances, making the process cheaper and faster for users.

Role of NIPL and Regulators

NPCI’s international subsidiary, NIPL, collaborated with MAS (Monetary Authority of Singapore) and participating banks to set up this linkage. The project stands as a showcase for cross-border interoperability of fast payment systems. Both RBI and MAS provided regulatory oversight to ensure compliance with capital controls, anti-money laundering (AML) norms, and foreign exchange rules.

For example, the transactions from India count towards the sender’s annual LRS limit (currently $250,000 per year), and only the allowed categories (gift and maintenance) are enabled. Banks on each side perform necessary due diligence, but from a user view it remains seamless. This successful integration has been lauded for potentially reducing remittance costs and transfer times between the two countries. It also sets a template for linking UPI with other countries’ payment systems in the future.

Real-world Usage

The UPI-PayNow corridor has made instant money transfers feasible for the Indian diaspora in Singapore (which is a sizable community). For instance, a working professional in Singapore can now send money to their parents in India on a UPI ID (perhaps linked to their parent’s bank account) instantly and at a lower cost than traditional remittances.

Likewise, an Indian tourist in Singapore who ran out of local currency could receive money from a family member in India in real-time via UPI-PayNow. The daily cap of ~₹60k/SGD$1000 is sufficient for most personal needs (it covers roughly USD $800, which is higher than typical small remittances). By integrating two national payment networks, India and Singapore have demonstrated the possibility of a globally interconnected payment ecosystem, where users need not rely on expensive intermediaries to send money across borders.