How NRIs can use UPI for instant free transactions abroad

UPI setup for NRIs

NRIs should first link their international mobile numbers with their NRE or NRO bank accounts. This step is most important to enable UPI or Unified Payments Interface transactions with their overseas numbers. Once connected, NRIs can download a UPI-enabled app compatible with international mobile numbers like iMobile or PhonePe.

After downloading the app, users have to go through an onboarding process, including mobile number verification. They then need to create a unique UPI ID or Virtual Payment Address (VPA) associated with an international mobile number. Finally, they select their bank account and submit the details to activate their UPI profile.

Supported countries, banks and applications

NPCI has enabled UPI for NRIs residing in certain countries including USA, Canada, UK, UAE, Singapore, Australia etc. As for banks that allow UPI transactions, NRIs can access services from a list of specific banks. These include AU Small Finance Bank, Axis Bank, Canara Bank, City Union Bank, DBS Bank, Equitas Small Finance Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, IndusInd Bank, Punjab National Bank and South Indian Bank. Each of these banks offers services to support NRIs in managing their finances through UPI.

Currently, UPI apps that allow NRIs to transact from their international numbers include BHIM AU (by AU Small Finance Bank), FedMobile (by Federal Bank), iMobile (by ICICI Bank), BHIM Indus Pay (by IndusInd Bank), SIB Mirror+ (by South Indian Bank) and PhonePe. These programs ensure that NRIs can easily connect to their financial networks in India, regardless of their current location.

How NRIs can use UPI

UPI enables NRIs to send money in Indian Rupees for various purposes like paying Indian merchants, transferring to UPI IDs or scanning Indian QR codes. NRIs can also send money to any Indian mobile number or bank account, provided it is UPI-enabled. With UPI, transactions are processed instantly, ensuring that the recipient’s account is credited almost immediately upon completion.

UPI transactions are currently only done in Indian Rupees (INR). When you initiate a successful UPI transaction, the funds are credited to the beneficiary’s account almost instantly. However, contact payments can only be made to Indian mobile numbers and only if the recipient has a valid UPI/VPA ID linked to a bank account in India.

For NRIs, it is important to remember that UPI transactions have certain daily limits. NPCI imposes a maximum transaction limit ₹1 lakh per day, although this may vary slightly depending on the bank. In case of newly registered UPI IDs, NRIs have an initial transaction limit ₹5,000 for the first 24 hours, after which the full daily limit is restored.

Eligible transactions for NRIs

NRIs are allowed to make UPI transactions between NRE and NRO accounts as well as Indian resident accounts. However, transfers from NRO account to NRE account are prohibited. Allowed transaction combinations include NRE to NRE, NRE to NRO, and NRE or NRO to resident accounts. If an NRI has multiple bank accounts, each account must have a unique UPI ID as multiple accounts cannot be linked to a single UPI/VPA ID.

Even if NRIs are not registered with UPI, they can still receive funds using the ‘send to account’ option in the UPI app. This option allows the sender to manually enter the recipient’s bank account details.

Joint account holder considerations

For NRIs with joint accounts, UPI is limited to the primary account holder, who can create a single UPI ID and access it on only one device. This restriction ensures secure and controlled access, especially in shared accounts with multiple account holders.

A convenient and inexpensive option

While UPI can be used abroad, NRIs can transact even while traveling to India or other countries. There is no need to re-register with a local mobile number when you change location. If NRIs face cellular issues, they can rely on Wi-Fi to make UPI payments even when international roaming is inactive.

According to the NPCI website, UPI transactions are free for NRIs, making them a cost-effective option for payments in Indian Rupees. With the inclusion of NRIs, UPI has become a convenient and inexpensive option for supporting families, processing routine transactions and connecting financially with India.