Indian Prime Minister Narendra Modi has called on BRICS nations to embrace India’s Unified Payments Interface (UPI), promoting financial integration across member countries. During a recent summit, Modi highlighted the success of UPI’s adoption by the UAE and the growing interest from other nations, such as Mauritius, in incorporating the payment system into their economies.
UPI, which revolutionized India’s digital payments landscape, was introduced in Dubai on March 28, 2023. This launch was made possible through a partnership between Dubai-based Mashreq Bank and NPCI International Payments Limited (NIPL), an entity focused on expanding UPI’s global footprint. Neopay terminals across Dubai now accept UPI payments, enhancing the ease of transactions for Indian travelers.
Anubhav Sharma, deputy chief of partnership business development at NIPL, emphasized the significance of cross-border payment solutions. “This collaboration simplifies payment processes for Indian travelers to the UAE,” Sharma stated. Additionally, digital payments leader PhonePe plans to introduce remittance services using UPI, streamlining money transfers and eliminating the need for extensive banking details.
Maldives Joins The UPI Movement
The Maldives has also taken steps to implement UPI within its borders. Following a recommendation from the nation’s Cabinet, President Mohamed Muizzu initiated measures to introduce the payment system after his recent state visit to India. The Maldivian government believes UPI adoption will enhance financial inclusion, improve transaction efficiency, and strengthen the country’s digital infrastructure. The move will also pave the way for collaboration between banks, fintech companies, and telecom firms to form a consortium for its successful rollout.
The Rise Of Digital Payments In India
India’s digital payments ecosystem has seen rapid growth in recent years, particularly through platforms like UPI. According to a study by the Reserve Bank of India, the share of digital payments more than doubled between 2021 and 2024, accounting for 40 to 48 percent of transactions. However, cash transactions still dominate, representing around 60 percent of all transactions.
The report, authored by RBI economist Pradip Bhuyan, noted that while cash remains prevalent, its usage is steadily declining. UPI, initially launched during India’s 2016 demonetization, received a substantial boost in usage during the COVID-19 lockdowns, cementing its role in the country’s financial ecosystem.
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