INDIA’S UPI PUSH (Syllabus: GS Paper 3 - Economy)

Context: India is in talks with a number of African countries, including Namibia, Mozambique and Kenya, to help develop its Unified Payment Interface (UPI) and to conclude commercial partnerships between payments platforms.

• Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. 
• It was developed by National Payments Corporation of India in 2016.

Key Points

• UPI had already established itself in countries like Singapore, Bhutan, Nepal, and the UAE.
• Countries that have adopted different forms of Indian payment systems include France, UAE, Saudi Arabia, Bahrain, Singapore, Maldives, Bhutan, and Oman. 
• This means that Indian users can now use UPI, RuPay, and other digital payment channels in these countries, making transactions easier and more convenient.
• India follows two strategies to boost UPI’s global footprint. 

• The first is to help build platforms and digital infrastructure for partner nations. 
• The second is to sign commercial partnerships and linkages with existing platforms in foreign countries to make life easier for Indian travelers and migrant