On Monday, India launched the Unified Payment Interface (UPI) services in Sri Lanka and Mauritius and RuPay card services in Mauritius. The inauguration was done by Indian PM Narendra Modi, Sri Lankan President Ranil Wickremesinghe, and Mauritian PM Pravind Jugnauth via video conference.
Uniting Partners with India
“India’s UPI or United Payments Interface comes in a new role today - Uniting Partners with India,” Modi stated on the launch. Hoping that the two neighbours would benefit from UPI, Modi said that “digital transformation will get a boost, local economies will witness positive change, and tourism will be promoted” with the launch.
The launch of India's UPI services in Sri Lanka and Mauritius underscores the robust linkages between our countries. https://t.co/u9da79j7L2
— Narendra Modi (@narendramodi) February 12, 2024
The Indian leader noted that the launch is a “special day for three friendly nations of India, Sri Lanka, and Mauritius when their historic connections take the form of modern digital connections,” emphasising that cross-border relationships and transactions will be strengthened even more by fintech connectivity.
He further expressed confidence that Indian tourists would prioritise destinations with UPI and that students in the countries would get special benefits from it. The co-branded RuPay card will now be designated as a domestic card in Mauritius after the launch. Modi said that the launch of RuPay would facilitate people coming to India from Mauritius and greatly benefit the citizens of both countries.
The UPI and RuPay card system will “enable real-time, cost-effective and convenient payments in our own currency,” he added, hoping that the two nations would move towards cross-border remittances, that is, a Person-to-Person (P2P) payment facility in the near future.
Launch Success of Global South Cooperation
The Indian PM hailed the launch as a “success of Global South cooperation.” Highlighting India’s Neighbourhood First policy and its maritime SAGAR vision (security and growth for all in the region), he affirmed, “India does not see its development separately from its neighbours.”
Additionally, he underscored India’s efforts to support its neighbours in the last 10 years, saying that New Delhi helps its friends in times of crisis, such as natural disasters, health-related or economic issues, or support on the global stage. “India has been the first responder and will continue to be so,” he promised.
Modi also outlined the importance of paying particular attention to issues facing the Global South, even as India presided over the G20. Further, in order to share the advantages of India’s digital public infrastructure with nations in the Global South, he proposed establishing a Social Impact Fund.
UPI and RuPay Abroad
Focusing on the revolutionary change brought about by the digital public infrastructure in India, Modi mentioned that the smallest vendors in the country’s remotest villages are using UPI to make digital payments. He noted that, in 2023, over 100 billion transactions worth Rs 2 lakh crore ($24.91 billion) took place via UPI. “Use of technology is promoting transparency, reducing corruption and increasing inclusivity in society,” the Indian PM remarked.
UPI, an instant real-time payment system to enable inter-bank transactions using mobile phones, was developed by the National Payments Corporation of India (NPCI). Meanwhile, RuPay is an Indian global card payment network widely accepted at shops, ATMs, and online.
#StatecraftInTheNews: (1/6) France has become the first country in Europe to accept India's Unified Payments Interface (UPI). The services were officially launched at the Eiffel Tower in Paris on Friday. pic.twitter.com/Qn2uOIDrMN
— Statecraft (@statecraftdaily) February 5, 2024
RuPay was previously launched in Nepal, Bhutan, Singapore, and the UAE. It is soon scheduled to be launched in Africa. Bhutan became the first country to adopt UPI in 2021. Oman, the UAE, the UK, Southeast Asia, and Nepal also accept UPI in one form or another.
Recently, India formally launched UPI at the Eiffel Tower in Paris as NPCI’s arm, NPCI International Payments Limited (NPCL), tied up with French e-commerce and proximity payment company Lyra.