Launched by the National Payments Corporation of India in 2016, Unified Payments Interface (UPI) has revolutionized the way payments are made in India. Since its inception, UPI has seen exponential growth, with over 14,963 million transactions recorded by August 2024, amounting to a total value of ₹20.6 lakh crore. Now, this groundbreaking payment system is available to NRIs, offering them UPI for NRIs benefits, allowing them to experience fast, secure, and efficient transactions just like residents, making cross-border payments more convenient than ever before.
In this blog, Brivan Consultants will explore how UPI benefits NRIs, its impact on financial transactions, and the steps to set it up for use in your NRO or NRE account.
Why UPI Access is a Game Changer for NRIs
- Instant Remittances: UPI has dramatically simplified the process of sending money from abroad, eliminating the need for costly wire transfers or third-party services. With UPI, NRIs can send money directly to family members in India in real-time, without the hefty fees associated with traditional remittance methods. Additionally, NRIs can link their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts to UPI using their Indian mobile number. This enables them to pay bills, transfer funds, and make transactions conveniently while abroad.
- Financial Inclusion: For NRIs, managing finances in India has always been challenging due to geographical barriers. With UPI, you can now perform transactions directly with Indian banks and merchants, ensuring you stay connected to the Indian financial ecosystem from anywhere in the world.
- Support for Digital India: UPI has contributed immensely to India’s digital economy, and with NRIs now able to use it, the volume of digital transactions will only increase, helping India progress towards becoming a fully digital society.
- Enhanced Ties with India: UPI also strengthens the financial bond between India and its global diaspora by enabling NRIs to participate in the Indian economy more effectively.
- Global Recognition: UPI has gained international recognition as a cutting-edge payment system, and with its global reach, NRIs are now part of this progressive digital payment movement.
Setting Up UPI for NRIs: A Simple Process
Setting up UPI for your NRE or NRO account is straightforward. Here’s how you can get started:
- Choose Your UPI App: Select from the wide range of UPI apps available, such as BHIM UPI, Google Pay, or PhonePe. Download your preferred app to your phone.
- Register: Use your Indian mobile number to create an account on the app. If you’re abroad, you can retain your Indian number or use an e-SIM to receive verification codes.
- Link Your Bank Account: Link your NRO or NRE bank account to your UPI app. You may need to enter your bank details and verify them using an OTP.
- Create Your UPI ID: The UPI app will generate a unique ID for you, based on your phone number, name, and bank account details.
- Set Your UPI Pin: Set a secure 4-digit UPI pin that will be required for authorizing future transactions.
Making Payments with UPI
Once you’ve set up UPI, you can use it to send money, pay bills, or make purchases in India. Simply scan a QR code, transfer funds using the recipient’s UPI ID, or provide their bank account details to transfer money.
However, there are certain transaction limits:
- Daily Limit: The daily UPI transaction limit is ₹1 lakh for a cumulative value of all transactions.
- Initial Limit: For new UPI users, the transaction limit is ₹5,000 during the first 24 hours of registration.
Benefits of UPI for NRIs
- Convenient Transactions: Send money instantly and securely, whether you’re paying a bill or gifting money to loved ones in India.
- Cost-Effective: UPI charges little to no transaction fees, making it far cheaper than traditional remittance options.
- Enhanced Security: UPI uses encryption technology to secure transactions, ensuring that your payments are safe from fraud.
- Wide Acceptance: UPI is accepted by millions of merchants, making it easy to use for both personal and professional payments.
- Real-Time Tracking: UPI allows you to track your payments and transfers in real-time, providing complete transparency.
Countries Where NRIs Can Use UPI
Currently, NRIs in the following countries can use UPI for payments:
- Australia
- Canada
- United Kingdom
- United States of America
- UAE
- Singapore
- Qatar
- Saudi Arabia
- Malaysia
- South Africa
- And more!
Common Issues NRIs Face with UPI
While UPI is incredibly convenient, there are a few challenges you may face:
- Mobile Number Verification: If you haven’t used your Indian number for a while, verifying it on UPI apps might be challenging.
- Lower Transaction Limits: NRIs might have lower transaction limits compared to residents, depending on their bank and country of residence.
- Technical Glitches: Like all digital platforms, UPI can experience occasional technical issues that disrupt transactions.
- Fraud Risks: Due to the rise in digital payments, scams and frauds are a concern. Always exercise caution when making payments.
Best Indian Banks Offering UPI Facility for NRIs
For NRIs looking to make seamless UPI payments, several Indian banks have integrated this service, making it more convenient to manage finances across borders. Some of the leading banks providing UPI facilities for NRIs include:
ICICI Bank: Known for its global presence, ICICI Bank offers UPI services with enhanced security features for NRIs.
HDFC Bank: HDFC Bank provides a user-friendly UPI platform, ensuring smooth transactions for NRIs.
State Bank of India (SBI): As India’s largest public sector bank, SBI facilitates UPI services for NRIs, helping them stay connected with their Indian financial networks.
Axis Bank: Axis Bank’s UPI services make it easy for NRIs to send and receive payments with minimal hassle.
Bank of Baroda: With its extensive network and UPI support, Bank of Baroda ensures easy access to digital payments for NRIs.
Punjab National Bank (PNB): PNB offers UPI-enabled services that allow NRIs to make payments conveniently and securely.
These banks offer UPI services for NRIs, making it easier to use UPI for transactions from abroad.
Conclusion
UPI has transformed the payment landscape in India, making it easier, faster, and cheaper for NRIs to manage their finances and stay connected with family and businesses back home. With the added benefit of global access, UPI for NRIs benefits are revolutionizing cross-border financial transactions, providing unmatched convenience and security.
Brivan Consultants is here to help NRIs navigate the complexities of Indian financial systems, including setting up UPI and optimizing your financial transactions. We offer expert guidance to ensure you make the most out of UPI and other digital tools, making your financial journey as smooth and hassle-free as possible. Reach out to us today to learn more about how we can assist you with your digital payment needs in India.
Frequently Asked Questions (FAQs)
Q1. Is UPI available for NRIs?
Yes, NRIs can carry out various UPI transactions from outside India, including sending money or making payments to Indian merchants or UPI/VPA IDs.
Q2. Which UPI app is best for NRIs?
To set up UPI for your NRE or NRO account, you can choose from several UPI apps. The most popular ones for NRIs include BHIM UPI, Google Pay, and PhonePe.
Q3. Is an OTP required for each UPI transaction for NRIs?
No, you do not need to enter an OTP for each UPI transaction. However, you must enter the UPI pin you set up when first registering for the UPI facility.
Q4. How do you create a UPI ID for NRI?
To create a UPI ID, link your Indian or foreign mobile number with your NRE or NRO bank account. After linking, download any UPI app, register, and enter the necessary bank details. The app will create a unique UPI ID based on your name and bank account details.
Q5. How to enable UPI for NRI?
To enable UPI for your NRI bank account, download a UPI app, register with your bank account details, and set a UPI pin. Once the PIN is set, you can start using UPI for transactions.
Q6. 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 registered, enable UPI on the app, which will generate a unique UPI ID. After setting your UPI pin, you can start using UPI for transactions on the SBI Anywhere app.
