RBI has permitted the UPI system to be accessible to international delegates for the G20 Summit.
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The Reserve Bank of India had announced instructions for the members of the G20 nations. The permit for using a mobile-based Unified Payments Interface (UPI) is given to travelers while making any payments in India.
Unified Payment Interface (UPI)
The Unified Payment Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It was established by the Reserve Bank of India (RBI) and the Indian Banks Association (IBA).
It is a system that brings together multiple bank accounts into a single mobile application and facilitates inter-bank transactions by instantly transferring funds between two bank accounts on a mobile platform. It combines many banking features, seamless fund routing, and trader payments under one single platform. The system is built on top of the Immediate Payment Service (IMPS), and it allows for 24×7 instant money transfers, even on weekends and bank holidays.
UPI has been widely adopted in India and has become a convenient and secure method of digital payment for millions of users. The RBI made an announcement on Wednesday that allows foreign nationals and NRIs who visit India access to UPI.
Access to UPI for G20 Members
Members of G20 countries will be allowed to access the UPI first from the international airports for their payments, and later the UPI will be enabled all over the other points in the country.
The circular mentions that banks and non-banks are given permission to issue PPIs, which can be further converted into INR-denominated full KYC (Know Your Customer) PPIs (prepaid payment instruments) for foreign nationals and NRIs who visit India.
The circular also added that the PPIs can be issued in the form of wallets that are linked to UPI and can be used for merchant payments (P2M) only. These pre-paid payment instruments can also be issued in a co-branding arrangement with entities authorized to deal in foreign exchange under the Foreign Exchange Management Act.
The PPIs would be assigned only after the physical verification of the passports and visas of the people at the point of issuance.
The RBI also stated that when foreign exchange is received in cash or through other payment instruments, the loading or reloading of such PPIs should be prohibited. The unused balances in these PPIs can be redeemed in foreign currency or transferred back to the source.
G20 Members
The G20, also known as the Group of Twenty, is an international forum consisting of 19 countries and the European Union. Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US, and the European Union (EU) form the G20. It is an international forum of the world’s major developed and developing countries.
Established in 1999, the G20 aims to bring together the world’s largest economies to discuss, coordinate, and develop policies to address global economic challenges. The member countries represent 85% of the world’s GDP and two-thirds of the global population. The G20 meetings provide a platform for leaders to exchange views on a wide range of economic, financial, and development issues, and to collaborate on solutions to address these challenges.
The G20 is widely recognized as a key player in the global economy, and its decisions and actions have a significant impact on the world’s economic growth and stability. In recent years, the G20 has focused on promoting economic growth and job creation, as well as improving financial regulation and addressing global imbalances. Through its efforts, the G20 continues to play a critical role in shaping the global economic landscape.
Giving access to the UPI system could be a brilliant idea and a great advertisement. This may not only increase the delegates’ comfort with payment in India but also be a great way to promote it to international elites.
