Back in 2016, UPI was introduced in India, and till 2021, this real-time, fast, and revolutionary money transfer was within the boundaries of India.UPI went global with Nepal and Bhutan in 2021, followed by Oman and UAE in 2022, and then France, Sri Lanka, and Mauritius in 2024 with official acceptance for transactions in these countries. But Indians, staying outside India (Non-Resident Indians/NRIs) were still not allowed to transact with their relatives staying in India using UPI. NPCI carefully resolved this issue by granting UPI access to NRIs to transact with Indians. So, NRIs holding Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts can now seamlessly transact with their closed ones with UPI.

How Will UPI Work For NRIs – How Can NRIs Transact Using UPI With Indian Residents?

Well, we all know UPI for its simplicity. When it was introduced in India, it got instant acceptance because it removed all the complications (filling up forms, writing on cheques, going to bank, standing in a long queue). For the NRIs, UPI did the same by allowing them to send Indian rupees (foreign currency not allowed) to Indian UPI IDs, hence their dependency on the wire transfers will simply disappear.

To transact with Indian residents using UPI, the NRIs need to:

• 1. Link their international number with their NRE/NRO account
• 2. Then, download and install any UPI app that supports this feature (list given below)
• 3. Enter the international mobile number
• 4. Choose the NRI/NRO account
• 5. Complete the verification to link the NRE/NRO account and create the UPI ID
• 6. Select the payee’s UPI ID or VPA or UPI-enabled mobile number (alternatively, scan the QR of payee)
• 7. Select the amount
• 8. Validate the transfer by entering the PIN

If the NRI wants to receive money from Indian residents in the NRE/NRO account, they need to share the UPI ID or QR for the NRE/NRO account.

Just like the process Indians have to follow to get started with UPI (validating their mobile number and linking the accounts), NRIs need to do the exact same.

No unnecessary trouble!

What Is the Daily Limit for UPI Transfers for the NRIs?

On the day of starting with UPI, the NRIs will have a cap of 5000 rupees for the first 24 hours. After 24 hours, this cap goes away, and then, the daily transfer limit will be 1 lakh rupees (may vary from bank to bank).

NRIs of Which Countries Can Use UPI?

As per the reports from Mint, the following 12 countries will support this, and NRIs of the following countries can use UPI now:

• 1. Hong Kong (+852)
• 2. Canada (+1)
• 3. Australia (+61)
• 4. United Arab Emirates (+971)
• 5. Singapore (+65)
• 6. United Kingdom (+44)
• 7. Saudi Arabia (+966)
• 8. Oman (+968)
• 9. USA (+1)
• 10. Qatar (+974)
• 11. Malaysia (+60)
• 12. France (+33)

Which Banks Are Offering this Service?

As of now, the participating banks are (according to a report by Economic Times):

• Axis Bank
• Canara Bank
• City Union Bank
• DBS Bank Ltd
• Equitas Small Finance Bank
• Federal Bank
• HDFC Bank
• ICICI Bank
• IDFC First Bank
• IndusInd Bank
• Punjab National Bank
• South Indian Bank

UPI Apps Through Which NRIs Transact With Indian Residents

As of now, the following apps allow the NRIs to link their international mobile number and send money to Indian numbers:

• 1. PhonePe
• 2. BHIM
• 3. FedMobile by Federal Bank
• 4. iMobile by ICICI Bank
• 5. BHIM Indus Pay by IndusInd Bank
• 6. SIB Mirror+ by South Indian Bank
• 7. BHIM AU by AU Small Finance Bank

Will It Be Beneficial?

Of course, it is beneficial for the NRIs as well as the payee who will receive money in India. Some of the benefits of this facility include:

• 1. Zero charges for these UPI transfers in most of these countries due to NPCI tie-ups, enabling immediate transfers without hefty transaction fees
• 2. No need to bear the cost of keeping an Indian mobile number active solely for UPI access
• 3. No restrictions on transfers even during international travel
• 4. Many major banks and apps are already participating, with more expected to join soon
• 5. Users can pay bills, pay merchants, and make P2P transfers seamlessly using UPI

Previously, NRIs needed to hold a running Indian mobile number to setup UPI ID – which will not be required anymore. Altogether, it can be assumed that NRIs can effortlessly and easily transact with Indians with UPI. Undoubtedly, it is a great move. Just the following things NRIs need to keep in mind:

• 1. An NRI/NRO account with an Indian bank is mandatory
• 2. UPI works only in Indian currency (INR ₹); it cannot be used for foreign currency transfers
• 3. Transfers are allowed from NRE/NRO accounts to Indian accounts; however, transfers between NRE and NRO accounts (both ways) are restricted
• 4. Completion of KYC for the NRE/NRO account is mandatory
• 5. The linked international mobile number must belong to an Indian and the individual must be the primary account holder
• 6. The NRE/NRO account must be linked to the international mobile number
• 7. The recipient or beneficiary must have an Indian mobile number

End Words...

The benefits of this service for the payers and payees are beyond doubt and if we look for the benefits above the personal level, this expansion will bring ease and simplicity in the transactions. UPI facility will be a relief to NRIs who are living far away from their roots because of higher studies or jobs and the credit for this goes to the Government of India, RBI, and obviously NPCI. Their collaborative effort to bring all Indians (no matter where they are residing) under UPI to assist them with instant money transfers in a pocket-friendly way which can result in international expansion of UPI. Hence, Indians will get one more reason to take pride in UPI - the made-in-India, safe, and real-time money transfer method.

Integrate PayG Payment Gateway And Accept Payments From All Your Customers Conveniently