UPI for NRIs: How It Works Abroad

UPI network is SIM binding system, which was previously applicable for Indian SIM card phones. The following are the reasons which is why introducing UPI for NRIs is considered as a big move:

1. This will be beneficial for family residing abroad, international students and local businesses
2. In terms of volume, this facility will make this instant real-time payment system a more peer-to-merchant transaction than peer-to-peer

1. UPI payment can be availed by NRIs by just linking NRE and NRO account to their international SIM
2. No additional charges imposed on the accountholders.

UPI for NRIs: Eligibility Criteria

To use UPI as an NRI, you must fulfill certain eligibility requirements set by your bank and the National Payments Corporation of India (NPCI). Here are the common conditions:

1. You must have an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account in India.
2. Your bank must be UPI-enabled and support international mobile numbers.
3. Your mobile number (Indian or international) should be linked to your bank account.
4. You must register using a UPI-enabled app that supports NRI onboarding, such as Google Pay, PhonePe, Paytm, or BHIM (if supported by your bank).

Note: Not all banks and apps currently support UPI for NRIs, so it’s essential to verify with your bank.

Banks Allowing UPI for NRIs

The NPCI has permitted select banks to offer UPI services to NRIs using international mobile numbers. As of now, these banks are known to support UPI for NRIs:

1. State Bank of India (SBI)
2. ICICI Bank
3. HDFC Bank
4. Axis Bank
5. Punjab National Bank
6. Kotak Mahindra Bank
7. Canara Bank
8. Indian Bank

This list is expected to grow. Always check with your bank for the latest status and supported features for NRE/NRO accounts.

How to Use UPI for International Payments

While UPI currently does not allow outbound international transfers (from India to foreign countries), the NPCI is exploring cross-border remittance options with select countries.

However, you can:

1. Send money to Indian recipients using your NRE/NRO account via UPI
2. Receive international payments into your account using third-party services and then use UPI locally

Apps like Wise, Remitly, or Western Union can be integrated with your Indian bank to complement UPI for inbound remittances.

Step-by-Step Process to Set Up UPI for NRIs

Follow these steps to activate UPI if you're an NRI:

• Install a UPI-enabled app – Choose apps like Google Pay, PhonePe, Paytm, or BHIM that support your bank and international numbers.
• Select your bank – From the list provided in the app.
• Verify your mobile number – Use the international number registered with your bank account.
• Set up UPI PIN – Create your secure UPI PIN using your debit card credentials.
• Start using UPI – You can now send or receive funds through UPI while living abroad.

Ensure international SMS is enabled on your number during setup.

UPI Limits for NRIs

Transaction limits for NRIs using UPI depend on bank policies. However, NPCI guidelines generally allow:

1. ₹1 lakh per day for normal UPI transfers
2. ₹2 lakh per day for IPO applications (via UPI)
3. 5 to 20 transactions per day, depending on the app and bank

Always check with your bank if you have higher transaction requirements or specific use cases like bill payments or rent transfers.

Advantages of Introducing UPI for NRIs

The listed below are some of the advantages of introducing UPI for NRIs:  

1. UPI transactions streamline the process by eliminating the need for inputting lengthy recipient bank account details. Instead, users can utilise a UPI ID, QR code, or phone number, significantly reducing the risk of errors. 
2. Reduced transaction costs compared to other methods. 
3. UPI offers advanced security measures, crucial for secure financial transactions. Transactions via UPI are safeguarded by a two-factor authentication system, providing an additional layer of security compared to certain conventional methods. 

How can an NRI complete a UPI payment? 

Follow the steps given below to complete a UPI payment as an NRI: 

Step 1: Ensure that you possess an NRO or NRE account with an Indian bank that supports UPI transactions. 

Step 2: Register your overseas mobile number with your bank account. This step is crucial as UPI apps utilise mobile numbers for verification purposes. 

Step 3: Choose a UPI-enabled application. Numerous Indian banking apps and third-party platforms like Google Pay, PhonePe, Paytm, among others, facilitate UPI transactions. 

Step 4: Download and install your chosen UPI app on your smartphone. During the setup procedure, verify your mobile number. Since you're residing abroad, confirm that the app permits verification via your foreign number. Alternatively, you may need to utilise an Indian number temporarily for setup purposes. 

Step 5: Connect your NRO/NRE account to the UPI app. Typically, this involves selecting your bank from a provided list and allowing the app to automatically retrieve your account details through your registered mobile number. 

Step 6: Establish a UPI Personal Identification Number (PIN) for transactions. This usually entails entering a one-time password (OTP) dispatched to your registered mobile number, followed by creating a UPI PIN. 

Step 7: Once the setup is complete, you can begin utilising UPI for payments and transfers. You have the option to transfer funds to other UPI users, settle bills, or conduct online purchases. 

How Will This Work?

NPCI has announced that transactions through UPI for NRIs will be enabled through mobile numbers with country code of 10 nations. Here is how this new UPI service will operate for NRIs: 

1. NRE or NRO accountholders need to register for this service with their international mobile numbers 

1. According to the Foreign Exchange Management Act (FEMA) regulations, partner banks must ensure the applicability of the accounts 
2. The remitter and beneficiary banks must also ensure all the necessary validation for anti-money laundering or finance terrorism 
3. Transaction level and onboarding checks are applicable for all the accounts as per existing UPI guidelines.

When Will NRIs be Able to Use the UPI Facility?

The following are the countries that support this new facility are:

1. Hong Kong 
2. Canada 
3. Australia 
4. United Arab Emirates 
5. Singapore 

1. United Kingdom 
2. Saudi Arabia 
3. Oman 
4. USA 
5. Qatar 
6. Germany
7. Malaysia
8. Netherlands
9. France
10. South Africa
11. New Zealand

When can the Customers Avail Themselves of this Facility?

All NRI customers of 382 member banks of NPCI will be onboarded 30 April 2023. The NRI customers with non-resident accounts will be able to avail themselves of this facility after this date.