By:Staff WriterColombo (LNW): The governments of both India and Sri Lanka are working together on fintech sector connectivity by linking Unified Payments Interface (UPI) and Lanka Pay, Indian MEDIA quoted Prime Minister Narendra Modi as announcing it recently.
PM Modi announced the plan to link UPI and Lanka Pay when he was addressing the event to launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka, via a video message.
Previously, PM Modi and Sri Lanka President Ranil Wickremesinghe in India signed an agreement on Unified Payments Interface (UPI) acceptance in Sri Lanka during Sri Lanka President Ranil Wickremesinghe’s two-day visit to India.
In 2022, National Payments Corporation of India (NPCI), the umbrella organisation that offers UPI services, signed an MoU with France’s fast and secure online payment system, called Lyra.
In 2023, UPI and Singapore’s PayNow signed an agreement, allowing users in either country to make cross-border transactions.
The UAE, Bhutan, and Nepal have already adopted the UPI payment system.
UPI which is run by the National Payments Corporation of India (NPCI), reported 10.56 billion transactions in September, a dip from the 10.58 billion transactions reported in August, the first time the instant payment mechanism crossed the 10 billion transaction mark
India’s Unified Payments Interface (UPI) technology will now be accepted in neighbouring Sri Lanka.
UPI payments system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
So far, France, UAE, and Singapore had partnered with India on the emerging fintech and payment solutions.
Unified Payments Interface (UPI) is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
India has emerged as one of the fastest-growing ecosystems for fintech innovation and the PM Modi-led government has been instrumental in driving the globalisation of India’s digital payment infrastructure.
A key emphasis of Indian government has been on ensuring that the benefits of UPI are not limited to India only, but other countries, too, benefit from it.
Taking into account the popularity of the UPI payment system, the Reserve Bank of India proposed to permit all inbound travellers to India to use UPI for their merchant payments while they are in the country.
To begin with, the facility will be extended to travelers from G20 countries arriving at “select international airports”.
On February 8, the RBI governor made the announcement while deliberating upon the outcome of the three-day monetary policy committee meeting.