RBI governor Shaktikanta Das anticipates global expansion of UPI

Bhubaneswar, Aug 31 2024 : Reserve Bank of India (RBI) Governor Shaktikanta Das  expressed confidence in the further global expansion of the Unified Payments Interface (UPI), predicting that it will grow and internationalize in several more countries. During his ongoing five-day visit to Odisha, Das highlighted that UPI has already established a presence in numerous countries, facilitated by the use of QR codes and the integration with fast payment systems. He noted that discussions are currently underway with several other nations to introduce UPI. Das emphasized the potential for UPI to expand on a global scale, stating, “We expect this to grow further at the global level and internationalise in future,” during his interaction with the media on Friday evening.

Earlier in the week, at an event in Mumbai on Wednesday, Das shed light on the significant progress made in this direction. He mentioned that countries such as Bhutan, Nepal, Sri Lanka, Singapore, the UAE, Mauritius, Namibia, Peru, France, and a few others have already started accepting RuPay cards and payments through the UPI network. This progress underscores the collaborative efforts to promote India’s digital payment solutions internationally. Das also pointed out that India’s UPI system had achieved a significant milestone by linking with Singapore’s PayNow system in February last year. This integration has made cross-border remittances between India and Singapore faster and more cost-effective. The agreement with authorities in the UAE, Nepal, Namibia, and Peru to implement UPI-like solutions and the integration of UPI with Singapore’s Fast Payment System (FPS) for peer-to-peer remittances are seen as initial steps toward broader global financial connectivity.

Furthermore, the RBI Governor highlighted that these initiatives represent a broader strategy to internationalize India’s digital financial infrastructure, which is being recognized and adopted by an increasing number of countries. The global acceptance of UPI, alongside RuPay, marks a critical step in India’s journey to enhance its digital payment landscape on an international level. Additionally, Das mentioned the pilot programs for the digital rupee launched by the RBI in late 2022, which represent another key development in India’s digital currency initiatives. The wholesale market pilot was initiated in November, followed by the retail market pilot in December, indicating the RBI’s commitment to advancing digital currency and payment solutions.