NRIs can now legally use UPI for payments. Here is how

5 November 2024

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Non-Resident Indians (NRIs) now have the convenience of using the Unified Payments Interface (UPI) with their international mobile numbers linked to their Indian bank accounts. This step significantly eases payment processes and enhances the ability of NRIs to maintain seamless financial connections with their home country.

A Step-by-Step Guide to Activating UPI with an International Number

To get started, NRIs must ensure their international number is linked to an Indian NRE or NRO account. Here’s how to activate UPI:

1.   Link your international mobile number to an NRE/NRO account.
2.   Download a UPI-compatible app, such as BHIM or other banking apps.
3.   Follow the onboarding instructions within the app.
4.   Verify the international number.
5.   Create a unique UPI ID for the account.
6.   Choose the appropriate linked bank account and submit.

This process usually takes just a few moments and opens up the full suite of UPI benefits for NRIs.

What NRIs Can Do with UPI

•   Transfer funds in Indian Rupees to Indian bank accounts or UPI IDs.
•   Pay for services and goods using QR codes.
•   Make direct bank-to-bank transfers, even if the recipient lacks a UPI ID.
•   Manage multiple bank accounts by setting up different UPI IDs.
•   Conduct transactions without needing re-registration when visiting India.

Restrictions for NRIs on UPI

•   UPI transactions are only permitted in INR and not in any foreign currency.
•   Each bank account must have a separate UPI ID; linking multiple accounts to one UPI ID isn’t supported.
•   Transfers from NRO accounts to NRE accounts are prohibited.
•   Payments involving non-Indian contacts or Indian mobile numbers without valid UPI IDs are restricted.
•   Only primary account holders can generate UPI IDs; joint account holders cannot access this feature.

Supported Countries and Banking Partners

UPI functionality for NRIs is available in key countries like the United States, the United Kingdom, Australia, Singapore, Canada, and the UAE. Banks like HDFC Bank, ICICI Bank, and State Bank of India, among others, support this feature through apps such as BHIM, iMobile, and FedMobile.