The Reserve Bank on Friday issued directions allowing travelers from G20 countries to use mobile-based Unified Payments Interface (UPI) to make payments in India.
is i Is a system that integrates multiple bank accounts into a single mobile application, merging multiple banking features, seamless fund routing and merchant payments under a common platform.
On Wednesday, the RBI made an announcement regarding allowing access to UPI to foreign nationals and NRIs visiting India.
Initially, it had said the facility would be extended to travelers from G20 countries for their merchant payments (P2M) at select international airports while they are in the country. Later, it will be enabled at all entry points in the country.
“Banks/non-banks permitted to issue PPIs may issue INR denominated full-KYC PPIs to foreign nationals/NRIs visiting India (Initially, this facility will be extended to travelers from G-20 countries) , which will arrive at select international airports),” it said in a circular.
Such prepaid payment instruments (PPIs) can also be issued in co-branding arrangements with entities authorized to deal in foreign exchange under FEMA, the circular said.
It added, “The PPI may be issued in the form of a wallet linked to UPI and may be used only for merchant payments (P2M).”
The instructions have come into force with immediate effect.
It further said that PPIs will be issued after physical verification of passport and visa of the customers at the point of issue.
“The loading/reloading of such PPIs shall be against receipt of foreign exchange by way of cash or any payment instrument,” RBI said.
The unutilized balance in such PPIs can be redeemed in foreign currency or transferred ‘back to source’.
The G20 or Group of 20 is an intergovernmental forum of the world’s major developed and developing economies.
This includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, UK, US and European. Union (EU).
Payment transactions through UPI grew by 1.3 per cent in the month to nearly Rs. 13 lakh crore in January.