In another leap forward for India's digital economy, the instant payment technology UPI (Unified Payments Interface) will now be used in Sri Lanka, according to an agreement signed between the two countries on Friday in New Delhi.
Apart from the agreement on UPI acceptance, several agreements were also signed between India and Sri Lanka in the presence of Prime Minister Narendra Modi and Sri Lankan President Ranil Wickremesinghe, who is currently on a visit to India.
Unified Payments Interface is an instant payment system developed by National Payments Corporation of India. The interface facilitates inter-bank peer-to-peer and person-to-merchant transactions. It is used on mobile devices to instantly transfer funds between two bank accounts.
The UPI payments system has been a major success in India for retail digital payments and it is witnessing acceptance across the world.
So far, France, UAE, and Singapore have collaborated with India on the growing fintech and payment technology.
In February 2023, India and Singapore signed an agreement to connect their respective payment systems.
This collaboration enables users in both countries to conduct cross-border transactions seamlessly.
Now, individuals in India and Singapore can engage in real-time money transfers using QR-code-based methods or by entering mobile numbers linked to their bank accounts.
This partnership aims to facilitate efficient and convenient financial transactions between the two nations, promoting greater economic connectivity and ease of doing business.
In February 2023, India and Singapore signed an agreement to connect their respective payment systems.
This collaboration enables users in both countries to conduct cross-border transactions seamlessly.
Now, people of India and Singapore can engage in real-time money transfers using QR-code-based methods or by entering mobile numbers linked to their bank accounts.
This partnership aims to facilitate efficient and convenient financial transactions between the two nations, promoting greater economic connectivity and ease of doing business.
France had also agreed to use the UPI payment mechanism earlier this month. It will begin from the iconic tourist hotspot Eiffel Tower.
An MoU was also exchanged between the Reserve Bank of India (RBI) and the Central Bank of the UAE to interlink their payment and messaging systems.
This collaboration will enable the integration of the Unified Payments Interface (UPI) of India and the Instant Payments Platform (IPP) of the UAE.
As a result, users in both countries will have enhanced access and convenience in conducting cross-border transactions, fostering stronger financial ties and seamless payment experiences between India and the UAE.
Meanwhile, Prime Minister Narendra Modi said a string of projects worth Rs 75 crore have been announced for the Tamils of Indian origin living in Sri Lanka.
Speaking in the presence of Ranil Wickremesinghe, who arrived New Delhi on Thursday on a two-day official visit to India, he said, “I am confident Sri Lanka will keep working to fulfil aspirations of the Tamil community.”
The Prime Minister said that 2023 marks the 75th anniversary of India-Sri Lanka bilateral relations and the bicentennial celebration of the Indian-origin Tamil community's arrival in Sri Lanka.