In recent years, the Unified Payments Interface (UPI) has revolutionised how people in India manage their financial transactions. It has become one of the most convenient, fast, and reliable payment methods. While Indian residents have enjoyed seamless UPI transactions for some time now, Non-Resident Indians (NRIs) have faced certain restrictions, particularly the need for an active Indian mobile number.
However, a new development has now opened up UPI’s functionality to NRIs who hold NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts and have international mobile numbers linked to these accounts.
This new update has eliminated the previous requirement of maintaining an Indian mobile number for UPI transactions, offering great convenience to NRIs living abroad. Now, NRIs residing in 10 selected countries, including the United States, the United Kingdom, and the United Arab Emirates, can use their overseas mobile numbers to access UPI services in India.
In this article, we will provide a comprehensive guide to how NRIs can set up and use UPI with their international mobile numbers and explore the potential benefits of this new system.
Why This Change Matters for NRIs?
Before this update, NRIs who wanted to use UPI had to keep an Indian mobile number active, regardless of whether they were living abroad. UPI payment apps would send an SMS to verify the mobile number, making it necessary for NRIs to maintain their Indian number, often incurring extra costs. This was especially inconvenient for those living abroad for extended periods, as they had to pay to keep their Indian SIM card operational just to use UPI for transactions in India.
The recent update by the National Payments Corporation of India (NPCI) marks a significant shift in how NRIs can access UPI. With the ability to use international mobile numbers linked to NRE or NRO accounts, NRIs can now avoid the hassle and expense of maintaining an Indian mobile number while still enjoying the full range of UPI services. This change is particularly beneficial for those looking to send money to India, pay bills, or make purchases while living abroad.
Key Features of UPI for NRIs with International Numbers
NRIs can now leverage UPI for various transactions without the need for an Indian mobile number. Here are some of the key features of this system:
- Ease of Access: NRIs with international mobile numbers from 10 selected countries can now use UPI. These numbers must be linked to an NRE or NRO account for transactions to take place.
- No Need for Indian Mobile Numbers: The most significant change is that NRIs no longer need to maintain an active Indian mobile number, which saves costs and reduces inconvenience.
- Available in Selected Countries: Currently, the UPI service with international mobile numbers is available for NRIs in the USA, UK, UAE, Canada, Singapore, Australia, Hong Kong, Oman, Qatar, and Saudi Arabia.
- Comprehensive Transaction Options: NRIs can use UPI to pay utility bills, transfer funds, and even make purchases from merchants in India. This makes it easier to manage finances from overseas.
- Secure Transactions: As with all UPI transactions, those made using international mobile numbers are subject to the same level of security, with features like two-factor authentication and end-to-end encryption.
How to Set Up UPI with an International Mobile Number
Setting up UPI with an international mobile number is a relatively straightforward process, though it does require an NRE or NRO account linked to that mobile number. Below is a step-by-step guide on how to set it up through ICICI Bank’s iMobile Pay app:
- Log in to the iMobile Pay App: If you are an ICICI Bank customer, the iMobile Pay app is one of the platforms that allow NRIs to use UPI. You will need to download the app and log in using your credentials.
- Go to UPI Payments: Navigate to the UPI Payments section in the app. This option allows you to initiate the setup process for UPI.
- Verify Your International Mobile Number: The app will prompt you to verify your mobile number by sending an SMS. Ensure your international number is linked to your NRE or NRO account.
- Create a UPI ID: Once your mobile number is verified, go to the ‘Manage’ section and click on ‘My Profile’. From there, you can create a new UPI ID. The app will suggest available options, and you can choose the one that suits you best.
- Select Your Account and Submit: After selecting the UPI ID, choose the NRE or NRO account you want to link with it, and submit the information. You are now ready to use UPI for transactions using your international mobile number.
What Transactions Can NRIs Perform Using UPI?
Once NRIs have set up their UPI with an international mobile number, they can perform a wide range of financial transactions just like residents in India. Here’s what NRIs can do with UPI:
- Pay Utility Bills: NRIs can use UPI to pay for utility bills such as electricity, water, and phone services in India.
- Merchant Payments: UPI allows NRIs to make payments to Indian merchants by scanning a QR code or entering a UPI ID. This is useful for online purchases or in-store transactions when visiting India.
- Money Transfers: NRIs can transfer funds to family members, friends, or other beneficiaries by entering their UPI ID or mobile number. This is a convenient way to send money to Indian bank accounts.
- Peer-to-Peer Transfers: UPI facilitates peer-to-peer transfers, enabling NRIs to send money to anyone in India quickly and securely.
Regulatory Compliance and Security
To ensure the system’s safety, NRIs must comply with certain regulations. Here are some important points to note:
- KYC Compliance: NRE and NRO accounts must be fully KYC (Know Your Customer) compliant. This is a standard requirement for all banking services in India.
- FEMA Guidelines: Banks must ensure that all transactions comply with the Foreign Exchange Management Act (FEMA). These regulations govern the flow of foreign currency in and out of India.
- AML and CFT Checks: Anti-money laundering (AML) and combating the financing of terrorism (CFT) checks are in place to ensure the security and integrity of financial transactions. Banks are responsible for conducting these checks at both the remitter and beneficiary ends.
Countries Where NRIs Can Use UPI
As mentioned earlier, this UPI service is currently available for NRIs residing in 10 countries: the USA, UK, UAE, Canada, Singapore, Australia, Hong Kong, Oman, Qatar, and Saudi Arabia. NPCI is continuously working to expand UPI’s reach to more countries, making it easier for NRIs worldwide to access this service.
Future of UPI for NRIs
UPI’s growing international reach is a testament to its success in India and its potential on the global stage. NPCI has already forged ties with several countries, and recent collaborations with Singapore and France indicate the system’s expanding influence. The introduction of UPI for NRIs is part of a broader effort to make Indian financial systems more accessible globally.
In the near future, NRIs may see UPI being accepted by merchants in their countries of residence, allowing them to make payments and transfers as seamlessly as they do when in India. As UPI’s global presence increases, it has the potential to become a prominent international payment network, benefiting millions of Indians living abroad.
