In recent years, India has made significant strides in digital payments, and the latest development is the introduction of Unified Payments Interface (UPI) payment facility for international travellers visiting India. The Reserve Bank of India (RBI) has announced that inbound travellers visiting India can now make local payments using UPI while they are in the country. This move aims to boost digital payments in the country and provide a more seamless payment experience for tourists.
In this article, we will take a closer look at the UPI payment facility for international travellers visiting India, including who can avail of the facility, where it will be available, how it will work, and what the RBI had proposed in its Statement on Developmental and Regulatory Policies dated February 8, 2023.
Who Can Avail of this Facility?
The UPI payment facility for international travellers visiting India is initially available to travellers from G-20 countries only. However, it is expected that the facility will be extended to other international travellers soon. The UPI payment facility will be available to all inbound travellers visiting India for any purpose, including business, tourism, or medical treatment.
Where Will the Facility be Available?
The UPI payment facility will be initially available at select international airports – Bengaluru, Mumbai, and New Delhi. It is expected that the facility will be extended to other airports and cities in the near future to allow travellers visiting India to experience the convenience of QR Code-based UPI payments at over five crore merchant outlets across the country.
How Will it Work?
According to the RBI, eligible travellers would be issued Prepaid Payment Instruments (PPI) wallets linked to UPI for making payments at merchant outlets at the three international airports. Initially, ICICI Bank, IDFC First Bank, and two non-bank PPI issuers – Pine Labs Private Limited and Transcorp International Limited will issue UPI-linked wallets. The eligible travellers will be able to use these wallets to make payments at over five crore merchant outlets across the country that accept UPI payments.
To make a payment, the traveller needs to scan the QR code provided by the merchant using the UPI-enabled PPI wallet. After scanning the QR code, the traveller needs to enter the transaction amount and authenticate the transaction using their UPI PIN. The transaction will be completed in a few seconds, and the merchant will receive the payment instantly.
It is important to note that the UPI-enabled PPI wallet can only be used for merchant payments (P2M) and cannot be used for person-to-person (P2P) transactions. Moreover, the PPI wallet can only be used for transactions in Indian rupees, and travellers will not be able to use it for foreign currency transactions.
What the RBI had Proposed?
The RBI had proposed the UPI payment facility for international travellers visiting India in its Statement on Developmental and Regulatory Policies dated February 8, 2023. The statement reads, "It is now proposed to permit all inbound travellers to India also to access UPI for their merchant payments (P2M) while they are in the country. To start with, this facility will be extended to travellers from the G-20 countries, arriving at select international airports."
The RBI's proposal aims to promote the use of digital payments in the country and provide a more seamless payment experience for tourists visiting India. The UPI payment facility for international travellers visiting India is a significant step in this direction, and it is expected to benefit both travellers and merchants alike.
Conclusion
The introduction of UPI payment facility for international travellers visiting India is a welcome move that aims to promote digital payments in the country and provide a more seamless payment experience for tourists. The facility is initially available to travelers from G-20 countries only and will be available at select international airports. However, it is expected that the facility.
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