Cross-Border UPI Payments

Why in News

NPCI collaborated with:

• HSBC India

• JP Morgan Payments

to enable real-time foreign-exchange settlement for international UPI transactions.

Role of HSBC

Provides:

Real-time FX rates through API integration

Role of JP Morgan

Supports:

Real-time currency conversion and settlement

UPI Global Presence

According to the source, UPI operates in:

9 countries

1. Singapore

2. UAE

3. Nepal

4. Bhutan

5. Mauritius

6. France

7. Sri Lanka

8. Qatar

9. Cambodia

Important Data

Global UPI transaction volume:

0.75 million FY25
→ 1.48 million FY26

Transaction value:

₹258.53 crore FY25
→ ₹330.43 crore FY26

UPSC Mains Angle

Internationalisation of UPI may support:

• Lower remittance costs

• Faster international payments

• Digital-payment diplomacy

• Fintech exports

• Reduced friction for Indian travellers

Conceptual Framework

UPI + Cross-border interoperability + FX settlement

can strengthen India's:

Digital Public Infrastructure diplomacy

Challenges

• Currency conversion

• AML requirements

• Cybersecurity

• Data protection

• Interoperability

• Different national regulations

GS Link

GS III: Economy, Digital Payments