UPI for NRIs: Seamless, Fast, and Cost-Effective Payments

Unified Payment Interface (UPI) is a revolutionary digital payment system launched by the National Payments Corporation of India in 2016. It has become India's most preferred payment method. The UPI payment system, initially only available for residents, is now accessible to Non-Resident Indians (NRIs) as well. This expansion enables NRIs to make UPI payments in Indian Rupees worldwide, offering a seamless and secure digital payment experience.

In August 2024, the number of UPI transactions equaled 14,963.05 million, a 41% increase from the previous year. And, The value of transactions stood at Rs 20.6 lakh crore, a 30% increase year on year.

Source: NPCI Data

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Why is UPI access for NRIs a turning point?

Giving UPI access to NRIs can be beneficial for several reasons.

High remittances: With UPI access to NRIs, sending money from abroad has become easier than ever. Using UPI saves time and the additional cost or fees of remitting money to India, which are charged in traditional methods.
Increased financial inclusion: NRIs might have struggled to maintain their bank accounts in India in the past due to geographical distance. With UPI, sending and receiving money has become easier than ever, ensuring NRIs have an easy and accessible way to stay connected with the Indian financial system.
Boost to the digital economy: Ever since UPI was introduced, the number of transactions done through UPI has increased rapidly. With the inclusion of NRIs, digital transactions will only multiply, hence contributing to the growth of India's digital activity.
Strengthened ties between India and the NRI population: With UPI access, doing financial transactions has become easier than ever for the NRIs. This ensures that strong connections between India and its NRI population are maintained. ‍
Global recognition for India’s digital payment system: India's UPI system is already widely appreciated in the country. With the UPI access given to NRIs, this digital payment system has gained worldwide recognition.

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Which phone number will be used for UPI?

As an NRI, you can use your Indian phone number for UPI transactions. You can retain your Indian number even if you are living abroad either through a physical sim card or a e-sim to receive SMS codes for verification. However, it is important to keep the SIM card active and ensure it is linked to your NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account.

ICICI Bank has recently allowed its NRI customers to use their international mobile numbers for UPI transactions through their NRE and NRO accounts. While other banks haven't implemented it yet, there's a good chance they will follow suit in the near future.

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UPI set up process for NRIs

To set up UPI for your NRE or NRO account, you must follow the steps below:

Choose a UPI app: You can choose any of several UPI app options. The most popular ones are BHIM UPI, Google Pay, and PhonePe. Select one app, and download and install it on your phone.
Register: Once the app is on your phone, create an account in the UPI app through your Indian mobile number.
Link bank account: Next, you must link your bank account to your UPI. You might have to enter and verify your bank account details with an OTP.
Create UPI ID: Once the bank account is linked, the UPI app will generate a unique ID based on your name, mobile number and bank account details.
Set UPI pin: You must set a UPI pin, which is a unique 4- or 6-digit code that you must enter to authorise future transactions.

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How can NRIs make payments with UPI?

Once you set up your UPI, you can use it to make payments or receive funds. You must scan a QR code, send money to the mobile number linked to UPI, or directly send funds to a UPI ID. You can also transfer funds by providing bank account details.

It is important to remember that UPI doesn't allow unlimited daily transfers. There is also a transaction limit that you must adhere to. According to NPCI guidelines, the per day UPI transaction limit is set at INR 1 lakh cumulative transaction value or a maximum of 20 transactions.

However, in the case of a new UPI/VPA ID registration, the limit is INR 5,000 for the first 24 hours. After 24 hours, the limit is reset to INR 1,00,000.

The number of transactions and transaction limit vary from bank to bank. Hence, it is best to check with your bank regarding the UPI limits, as they change from time to time.

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Benefits of UPI for NRIs

UPI offers the following benefits to NRIs:

Easy and convenient transactions: Making payments to India has never been easier and faster. Through UPI, you can pay anyone in India within minutes without the hassle of using traditional remittance methods.
Lower fees: Compared to the existing remittance methods, sending money through UPI is very cost-effective, as the fees are either low or zero.
Security: UPI uses advanced encryption technology to protect user and transaction data. Hence, making payments through UPI is considered very safe.
Accessibility: UPI payments are widely accepted in India, making it very easy to send money to friends and family for purchases.
Real-time tracking: You can track your transactions in real-time, making monitoring your payments and receipts easy.
Backed by government: UPI is backed by the government, which provides ongoing support and development to ensure continued growth and success.

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Common issues faced by NRIs with UPI

While UPI offers numerous benefits, as a user, you could face the following issues:

Mobile number verification: NRIs who haven’t used their Indian sim for a long time can find it difficult to verify their mobile number on UPI apps.
Lower transaction limits: The transaction limits for NRIs can be slightly lower than those for resident users.
Technical issues: Like any other apps, UPI apps can experience technical issues and outages, disrupting transactions.
Fraud or scam: The risk of fraud or scam is very high with UPI payments, and hence, it is important to be vigilant and careful while sending payments and accepting requests.

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Best Indian bank accounts for UPI facility

Several Indian banks provide UPI facilities for NRIs. The following are some of the top banks offering this service:

ICICI Bank
HDFC Bank
State Bank of India (SBI)
Axis Bank
Bank of Baroda
Punjab National Bank (PNB)

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List of countries supporting UPI payments

NRIs residing in the following countries have the facility to use UPI for payments and receipts:

Australia
Canada
France
Germany
Hong Kong
Malaysia
Netherlands
New Zealand
Oman
Qatar
Saudi Arabia
Singapore
South Africa
United Arab Emirates
United Kingdom
United States of America

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Conclusion

The introduction of UPI payments for NRIs has simplified the entire transaction process for NRIs. Sending and receiving money to family and friends, paying bills and investing in India have become easier than ever. However, it is important to know that the simpler digital payments get, the higher the number of frauds. Hence, it is important to use digital payment apps with caution. Make sure you avoid all unidentified requests and URLs, and ensure you review your transaction history often. Nevertheless, the benefits of UPI for NRIs outweigh the concerns, and you can make the most of this payment system by practicing with slight caution.

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Frequently Asked Questions

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Does UPI only work with BHIM or PhonePe Apps?

No, UPI payments for NRIs are not limited to BHIM or PhonePe apps. You can use other apps, such as Google Pay, Paytm, Mobikwik, and the Airtel Payments App, for UPI transactions.

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Is an OTP required for each UPI transaction for NRIs?

No, you do not need to enter OTP for each UPI transaction. However, you must enter the UPI pin you set up when first registering for the UPI facility.

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How do you create a UPI ID for NRI?

To get a UPI ID, you must first link your Indian mobile number/ foreign mobile number with your NRE or NRO bank account. After linking, you can download any UPI app and register for it using your mobile number. After you enter the necessary bank details, the app will create a unique UPI ID using your name and bank account details.

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How to enable UPI for NRI?

To enable UPI for your NRI bank account, you must download a UPI app, register by providing your bank account details, and then set a UPI pin. Once the PIN is set, you can start using UPI for transactions.

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How do you activate UPI for an NRI account?

To activate UPI for your NRI bank account, you must have an Indian mobile number linked to the bank account. Then, make sure the Indian number is active to register for UPI. Download the UPI app and register using the mobile number. Enter your bank details and OTP for verification. Once this is done, a unique UPI ID is created, and you can set up a UPI pin to activate UPI for your NRI account.

ICICI Bank has recently allowed its NRI customers to use their international mobile numbers for UPI transactions through their NRE and NRO accounts.

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How do you enable UPI for an NRI SBI account?

To enable UPI for your NRI SBI account, download the SBI Anywhere app and register using your NRI bank account details. Once you register, you can enable UPI on the app itself, and it will create a unique UPI ID for you. Once you set the UPI PIN, you can start using UPI on the SBI Anywhere app.

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How do I enable UPI for the NRI Axis account?

To enable UPI for your Axis Bank NRI account, download the Axis mobile app and log in using your credentials. Once on the app, look for the UPI activation option under 'Payments' or 'Digital Wallets'. Next, link your NRI account by entering the necessary details, get a unique UPI ID, and set a UPI PIN to start using UPI.

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How do you enable UPI for the NRI Federal Bank account?

To enable UPI for your Federal Bank NRI account, download the Federal Bank app and log in using your credentials. Next, register for UPI by entering all necessary details and verify with an OTP. Once done, you will get a unique UPI ID, and you can set a UPI PIN to start using the app for UPI payments.

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