UPI payments for NRIs: A seamless way to transact in India

The Unified Payments Interface (UPI) has revolutionised digital payments in India, making transactions instant, seamless, and hassle-free. Previously, this facility was restricted to Indian residents, but with recent advancements, NRIs can now leverage UPI for various transactions.

This development is particularly beneficial for NRIs, students studying abroad, and overseas businesses, allowing them to handle payments in India efficiently. Whether it's sending money to family, paying bills, or making online purchases, UPI eliminates the need for cumbersome bank details and expensive remittance services. By linking an NRE or NRO account to UPI, NRIs can now experience the convenience of India’s digital payment ecosystem.

Can NRIs use UPI?
 

Yes, NRIs pay via UPI using their NRE or NRO account from an eligible bank. To do so, they must link their account with an international mobile number from any of the eligible countries.

Eligibility criteria for NRIs:

• Must hold an NRE or NRO account with a UPI-enabled Indian bank.
• Should register with a mobile number from one of the supported countries with any supported UPI app, such as BHIM or PhonePe.
• The linked mobile number should be active and capable of receiving OTPs.
• The bank must comply with FEMA regulations and anti-money laundering guidelines.

List of supported countries and ISD codes
 

How NRIs can set up UPI payments
 

Setting up UPI as an NRI is straightforward. Follow these steps to register and start using UPI:

1. Ensure you have an NRE/NRO account with an Indian bank that supports UPI transactions.
2. Register your international mobile number with your bank. This is crucial for OTP verification.
3. Download a UPI-enabled app such as PhonePe, Paytm, or the IDFC FIRST Bank mobile app.
4. Verify your mobile number by allowing the app to detect and validate your SIM. Ensure the app supports international numbers.
5. Select your bank and link your NRE/NRO account. The app will fetch your account details linked to your registered number.
6. Set up a UPI PIN using an OTP sent to your registered mobile number.
7. Start transacting – send money, pay bills, or scan QR codes for merchant payments.

Features & benefits of UPI for NRIs
 

1. Instant money transfers:
 

UPI allows NRIs to send and receive money from anyone in India without hassles. Transactions can be done using just a UPI ID, QR code, or phone number.

2. Paying bills in India from abroad:
 

NRIs can conveniently pay utility bills, EMIs, school fees, insurance premiums, and subscriptions in India from anywhere in the world.

3. Secure and Reliable Transactions:
 

UPI is protected by two-factor authentication and encryption, reducing fraud risks. Each transaction requires a UPI PIN, ensuring security.

Limitations and challenges
 

Keep in mind the following restrictions for NRI UPI payments:

1. Restrictions on fund transfers
 

• UPI is currently limited to domestic transactions within India. NRIs cannot send money overseas through UPI.
• Transactions must comply with FEMA guidelines and cannot violate foreign exchange regulations.

2. Transaction limits for NRIs
 

• UPI has daily and per-transaction limits, which vary across banks. After setting up an account, there is a cooling period with a transaction amount limit of Rs. 5,000 for 24 hours.
• After the cooling period ends, you can transfer a maximum of Rs. 1 Lakh per day with the number of transactions limited to 24 times in a day.
• Some banks have lower limits on UPI transactions for NRIs compared to resident Indian accounts.

Conclusion
 

The introduction of UPI for NRIs has made managing financial transactions in India easier and more accessible. By linking an IDFC FIRST Bank NRE/NRO account to UPI, NRIs can enjoy instant, secure, and cost-effective digital payments. From sending money to loved ones to paying bills hassle-free, UPI eliminates complexities, offering a seamless banking experience. However, it is essential to stay updated on transaction limits and regulations to make the most of this facility.