The Reserve Bank of India (RBI) and NPCI International Payments Limited (NIPL) are embarking on an ambitious project to extend the reach of the Unified Payments Interface (UPI) to 20 countries by the fiscal year 2028-29, as part of their strategy to achieve Viksit Bharat 2047 goals. The initiative, set to commence in 2024-25, aims to broaden the global acceptance of UPI and RuPay cards, aligning with the objectives outlined in the RBI’s Payments Vision Document 2025.
In its annual report, the RBI underscored its commitment to enhancing the global footprint of India’s digital payment systems. Currently, UPI payments via QR codes are accepted in France and Nepal for e-commerce transactions, and India has established UPI agreements with seven other countries. Recent advancements include the launch of RuPay cards and UPI connectivity with Mauritius and Sri Lanka in February, enabling seamless transactions for travellers between these nations and India.
The RBI plans to explore collaborative efforts with countries in the European Union and the South Asian Association for Regional Cooperation (SAARC) to facilitate the adoption of the Fast Payment System (FPS). Furthermore, the RBI is engaging in discussions to establish cooperative arrangements with various central banks worldwide.
Amidst these international expansion efforts, the domestic payments ecosystem is also evolving. Traditionally reliant on SMS-based one-time passwords (OTPs) for additional factor authentication (AFA), the ecosystem is now exploring innovative solutions to enhance security and reduce transaction friction. Emerging technologies such as behavioural biometrics, location-based authentication, digital tokens, and in-app notifications are being considered as potential alternatives to traditional OTP-based systems.
