As digital transactions continue to transform banking, understanding UPI’s features and constraints allows NRIs to manage finances efficiently, maintaining a strong connection to their roots in India while living abroad
In the age of digital banking, the Unified Payments Interface (UPI) has become a powerful tool, enabling Non-Resident Indians (NRIs) to handle transactions with ease from overseas, reported taxscan.in.
By utilizing UPI, NRIs can bridge the gap between their financial commitments in India and their lives abroad, fostering a seamless banking experience.
Activating UPI on International Mobile Numbers
For NRIs, setting up UPI on an international mobile number involves a quick, straightforward process. NRIs need to link their international number to their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account and download a compatible UPI app. Once installed, the app will guide them through the onboarding process. This includes mobile number verification, creating a unique UPI ID, selecting the desired bank account, and submitting the information. With these steps completed in just a few moments, NRIs gain swift access to digital transactions.
GLOBAL UPI ACCESSIBILITY
An expanding list of countries now supports UPI for NRIs, including Australia, Canada, the United Kingdom, and the United States. Key banks such as Axis Bank, Canara Bank, and HDFC Bank facilitate UPI transactions for NRIs, with UPI apps like BHIM and PhonePe enhancing user accessibility and experience.
Benefits of UPI for NRIs
UPI offers NRIs a range of practical benefits tailored to their unique needs. They can send money in Indian Rupees (INR) directly to Indian merchants or other UPI IDs and make QR-based payments. Additionally, UPI enables NRIs to send funds to Indian bank accounts, even if the recipient does not have a UPI ID. They can link multiple NRE or NRO accounts to UPI and create separate UPI IDs for each account. Significantly, NRIs do not need to re-register their UPI ID while traveling to India, allowing uninterrupted access.
Restrictions and Considerations
There are specific limitations to UPI for NRIs. Transactions are restricted to INR, and foreign currency transfers are not allowed. Each UPI ID can only be linked to a single bank account, which means multiple accounts require separate UPI IDs. Transfers from NRO to NRE accounts are not permitted, nor can NRIs use UPI to make payments to non-Indian phone numbers. Additionally, in the case of joint accounts, only the primary account holder can generate and use the UPI ID.
UPI Money Transfer Process for NRIs
The UPI transfer process remains user-friendly for NRIs. For example, if Mr. A wants to send money to family in India, he can simply open his UPI app, enter the recipient’s UPI ID or scan their QR code, specify the amount, and confirm the transaction. To receive money, Mr. A can share his UPI ID with the sender, who will initiate the transfer seamlessly.
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