Tourists and NRIs Can Now Use UPI Without an Indian Bank Account
May 1, 2024
Unified Payments Interface (UPI), India’s flagship digital payment system, has rapidly transformed how payments are made across the country. Whether for daily transactions or large purchases, UPI has revolutionized payments by allowing instant, seamless, and secure fund transfers. Now, the system is expanding to cater to tourists and Non-Resident Indians (NRIs), offering them a way to make payments without needing an Indian bank account.
The National Payments Corporation of India (NPCI) has rolled out a new initiative that allows foreign visitors and NRIs to use UPI to make payments while in India. Here’s how this development is going to change the payment landscape for foreign tourists and NRIs:
1. Linking Foreign Bank Accounts to UPI
Traditionally, UPI required users to have an Indian bank account to access its services. However, with the new initiative, foreign nationals can link their overseas bank accounts to UPI, enabling them to make payments directly from their foreign accounts in India. This move aims to simplify the payment process for tourists and NRIs, who often face hurdles when attempting to access Indian payment systems without a local bank account.
2. UPI One-World: An International UPI Expansion
The introduction of UPI One-World is a breakthrough, allowing foreign users to access UPI services without being tied to Indian banks. Through this initiative, visitors to India can link their foreign bank accounts to the UPI platform via their international bank’s mobile app. This collaboration between global banks and the NPCI makes it easier for tourists to use UPI for various purchases, from street food to hotel bills and transport services.
This international expansion of UPI is expected to significantly enhance the ease of travel for foreign visitors and boost India’s tourism industry by making transactions smoother and more convenient for tourists.
3. How It Works for Tourists and NRIs
Tourists and NRIs will need to download a compatible UPI-enabled app from their home country’s banking app store. Once downloaded, they will be prompted to link their international bank accounts to the app. The payment can then be made directly in Indian Rupees (INR), with the conversion happening automatically at the time of the transaction.
This means that even if you’re an NRI or a tourist who doesn’t have a local Indian bank account, you can still use UPI to pay for goods and services in India. Whether you’re shopping at a market, paying for a meal, or even booking a ride, UPI will allow you to make instant payments as easily as a local resident would.
4. Advantages of UPI for Tourists and NRIs
The ability to use UPI without an Indian bank account comes with several benefits:
Ease of Payment: Tourists no longer need to carry large amounts of cash or worry about currency exchange rates. UPI allows them to make cashless payments using their foreign bank accounts.
Instant Payments: UPI transactions are processed in real-time, meaning there’s no delay in payments, which is especially useful for time-sensitive transactions like booking cabs or making restaurant payments.
Security: UPI is known for its robust security features, including two-factor authentication, ensuring that payments are secure even for international users.
Simplified Foreign Exchange: By linking foreign bank accounts to UPI, tourists can sidestep the need for currency exchange, and transactions will automatically be converted to INR, reducing conversion hassles.
5. Challenges and Considerations
While this new feature makes payments easier for tourists and NRIs, there are some important things to consider:
Network Compatibility: Not all foreign banks may be equipped to support UPI transactions, so it’s important for tourists and NRIs to check if their bank supports this system.
Foreign Exchange Rates: Though UPI makes currency conversion easier, users should keep in mind that exchange rates may fluctuate, potentially affecting the amount deducted from their foreign bank accounts.
Limited to Certain Regions: Initially, the service may be available only in select locations or for certain types of transactions. Therefore, tourists may not always find UPI available everywhere in India.
The introduction of UPI for tourists and NRIs is a welcome move that promises to enhance the ease of travel and spending in India. With UPI One-World, visitors no longer need to open a local Indian bank account to benefit from the convenience of UPI payments. As UPI continues to expand internationally, it is poised to become the go-to payment method for visitors to India, reinforcing India’s position as a global leader in digital payments.
For NRIs and tourists visiting India, UPI offers a fast, secure, and hassle-free way to handle payments, creating a frictionless experience that will make traveling to and within India much more convenient.