Like UAE, Prime Minister Mr. Narendra Modi encourages BRICS nations to adopt India's Unified Payments Interface (UPI)

Prime Minister Mr. Narendra Modi urged BRICS nations to embrace India's Unified Payments Interface (UPI) in their markets on Wednesday, promoting financial integration among the member countries. He highlighted that the United Arab Emirates (UAE) has successfully adopted the UPI system. At the same time, Mauritius has shown interest in the technology. UPI was launched in Dubai on March 28, 2024, facilitated by a partnership between Mashreq Bank and NPCI International Payments Limited (NIPL). This collaboration aims to enhance payment processes for Indian travellers in the UAE. It includes plans for inward remittance services through PhonePe, simplifying money transfers by leveraging UPI infrastructure.

In a significant development, the President of the Maldives, Mr. Mohamed Muizzu, announced on October 21 the decision to introduce UPI in the island nation, following a Cabinet recommendation. During his recent state visit, this initiative stems from India’s commitment to sharing digital and financial services expertise. The Maldivian government anticipates adopting UPI will enhance financial inclusion, improve transaction efficiency, and strengthen digital infrastructure. To facilitate this implementation, a consortium involving banks, telecom, state-owned, and fintech companies will be established. Additionally, a study by a Reserve Bank of India economist revealed that digital payments have more than doubled in share from 14-19% in March 2021 to 40-48% in March 2024. However, cash transactions still account for 60% of all transactions.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.