The recent Network-to-Network agreement signed by India and Sri Lanka marks a significant milestone in strengthening bilateral cooperation between the two South Asian nations. The agreement aims to facilitate the acceptance of Unified Payments Interface (UPI) transactions seamlessly across borders. The agreement signed to launch UPI in Sri Lanka will increase fintech connectivity, PM Modi said during joint address with Sri Lanka President Ranil Wickremesinghe.
The Agreement signed to launch UPI in Sri Lanka, will increase Fintech connectivity,
says PM Narendra Modi during joint address with the Sri Lankan President on the UPI launch.
The decision on UPI comes days after India and France signed a similar agreement on UPI. Enabling UPI payments in France means Indian tourists would now be able to make payments in France in rupee through UPI. It will be started from Eiffel Tower. In other others, Indians visiting Europe will be able to use their UPI app to make their payments in France in the rupee using local QR or UPI ID.
Earlier this year, the Unified Payments Interface (UPI) of India and Singapore’s PayNow forged an agreement, enabling users in both nations to conduct cross-border transactions seamlessly. Additionally, the UPI payment system has already been adopted by the United Arab Emirates, Bhutan, and Nepal. Reports suggest that the National Payments Corporation of India (NPCI) is actively engaging in discussions with several countries in the USA, Europe, and West Asia to extend the reach of UPI services further.
The agreement holds immense promise for individuals and businesses engaged in cross-border transactions between India and Sri Lanka. With the UPI platform gaining popularity in India as a preferred mode of digital payment, its extension to Sri Lanka opens up new avenues for seamless remittances, trade settlements, and even tourism-related transactions.
UPI is an instant real-time payment system developed by National Payments Corporation of India (NPCI). The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions. According to Reserve Bank of India (RBI) data, UPI transactions stood at Rs 139.2 lakh crore in FY23 or about 73 percent of all non-cash transactions in India in 2022.