The Unified Payments Interface (UPI) is a groundbreaking digital payment system developed by the National Payments Corporation of India (NPCI). It has transcended national borders, enabling seamless and zero-cost transactions across multiple countries. UPI allows users to transfer money instantly using just a mobile number or by scanning a QR code, directly debiting from their linked bank accounts without incurring any fees.
The convenience and efficiency of UPI have made it a preferred method of payment not only in India but also on a global scale.
Among these nations, Bhutan and France stand out for their early adoption of UPI. Bhutan embraced this technology in 2021 in partnership with the Royal Monetary Authority (RMA), while France enabled UPI transactions at major tourist attractions like the Eiffel Tower through collaboration with Lyra.
This expansion into the European market is particularly significant, promising broader acceptance for Indian travelers. Likewise, the UAE, as a vital trade partner of India, has adopted UPI, which enhances economic interactions between the two nations.
To utilize UPI abroad, users must activate international payments through their respective UPI applications, such as PhonePe. This activation enables Indian tourists and expatriates to conduct transactions effortlessly in these countries. However, it is advisable to carry alternative payment methods due to the selective acceptance of UPI payments internationally.
While UPI’s international expansion represents a significant milestone, users should be aware of potential bank charges for international transactions and the requirement of an active internet connection for executing UPI payments. The global acceptance of UPI highlights India’s growing influence in the digital economy and its commitment to enhancing the convenience and security of cross-border transactions.
Q1. What is UPI and how does it work?
Answer: UPI, or Unified Payments Interface, is a digital payment system that allows instant money transfers using mobile numbers or QR codes. It directly debits linked bank accounts without fees.
Q2. In which countries can I use UPI?
Answer: UPI is accepted in several countries, including Sri Lanka, Mauritius, France, UAE, Singapore, Bhutan, and Nepal, facilitating seamless international transactions.
Q3. How can I activate UPI for international payments?
Answer: Users must activate international payments through their UPI apps, like PhonePe, to utilize UPI for transactions abroad while ensuring other payment options are available.
Q4. Are there any fees associated with UPI transactions abroad?
Answer: While UPI transactions are generally free, users may encounter bank charges for international transactions, which can vary by bank.
Q5. Which banks support UPI international payments?
Answer: Various banks, including Bank of Baroda, Bank of India, and Punjab National Bank, support UPI for international transactions, enhancing accessibility for users.
Question 1: What does UPI stand for?
A) Unified Payment Interface
B) Unified Payments Initiative
C) Universal Payment Interface
D) Unified Payment Integration
Correct Answer: A
Question 2: Which country was the first to adopt UPI?
A) Bhutan
B) Nepal
C) Mauritius
D) Sri Lanka
Correct Answer: A
Question 3: What is a requirement for using UPI internationally?
A) A specific UPI app
B) A credit card
C) A local bank account
D) A VPN connection
Correct Answer: A
Question 4: In which country can UPI transactions be made at the Eiffel Tower?
A) Italy
B) France
C) Germany
D) Spain
Correct Answer: B
Question 5: Which bank is NOT listed as supporting UPI international payments?
A) Canara Bank
B) HDFC Bank
C) Indian Bank
D) Union Bank of India
Correct Answer: B
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