The National Payments Corporation of India (NPCI) has expanded the Unified Payments Interface (UPI) to include Non-Resident Indians (NRIs). This new feature allows NRIs to make easy and free money transfers to individuals and businesses in India using their smartphones. This advancement aims to simplify the way NRIs manage their finances back home.
How It Works
NRIs can now link their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank accounts to their international mobile numbers. This means that they can use popular UPI apps like Google Pay, PhonePe, and Paytm to send and receive money. This change is especially beneficial for NRIs living in countries such as the United States, Canada, the United Kingdom, the UAE, Singapore, and Australia.
Key Benefits of UPI for NRIs
- Free Transactions: One of the biggest advantages of using UPI is that NRIs can transfer money without paying any fees. This is a great way for NRIs to support their families and friends in India without worrying about high transfer costs.
- Instant Transfers: With UPI, funds are transferred instantly. This means no more waiting for days for money to reach India, as is often the case with traditional bank wire transfers.
- Enhanced Security: UPI provides strong security measures to keep user data and transactions safe. This helps NRIs feel more secure when managing their finances from abroad.
- Convenience: NRIs can manage their finances using a simple smartphone app. This convenience makes it easier for them to make payments and send money whenever they need to.
Important Points to Remember
While the new UPI service for NRIs is beneficial, there are a few important points to consider:
- Transaction Limits: There are limits on how much money NRIs can send. Generally, the maximum transaction limit is ₹1 lakh per day, though this can vary by bank. For new accounts, the limit is ₹5,000 during the first 24 hours after activation.
- Supported Banks: Not all banks may support UPI transactions for NRIs. Some banks that do support this feature include AU Small Finance Bank, Axis Bank, HDFC Bank, ICICI Bank, and others. It’s important for NRIs to check with their bank to see if they can use UPI.
- Mobile Number Verification: NRIs need to verify their international mobile number with their bank to use UPI. This is an essential step in setting up their account.
- Multiple Accounts: NRIs who have more than one bank account must create a unique UPI ID for each account. For those holding joint accounts, only the primary account holder can use UPI.
Setting Up UPI for NRIs
Setting up UPI is a straightforward process for NRIs. Here’s how they can do it:
- Link International Mobile Number: NRIs should link their international mobile numbers to their NRE or NRO bank accounts.
- Download a UPI App: They need to download a compatible UPI app, such as iMobile or PhonePe.
- Complete Onboarding: During onboarding, they will need to verify their mobile number and create a unique UPI ID or virtual payment address (VPA).
- Select Bank Account: After setting up their UPI profile, they must select their bank account to begin making transactions.
The extension of UPI to NRIs marks a major step towards a more inclusive digital payment ecosystem. It will make it easier for NRIs to manage their finances and support loved ones back home. As UPI continues to grow and evolve, we can expect further advancements that will benefit users both in India and abroad. This development is not just a convenience; it represents a significant leap in how cross-border payments are conducted, promising to make international money transfers quicker, easier, and more cost-effective.
