UPI transactions can be done by NRE/NRO account holders using their international mobile number

The National Payments Corporation of India (NPCI) on Tuesday (January 10, 2023) instructed members of the Unified Payments Interface (UPI) ecosystem to allow non-resident account types such as non-resident external (NRE)/ non-resident ordinary (NRO) accounts having international mobile numbers to get on-boarded and transact through UPI. Till now, the service was only available for accounts with Indian numbers (+91) linked to them.

Initially, the service will be available for NRIs from Singapore, Australia, Canada, Hong Kong, Oman, Qatar, the USA, Saudi Arabia, United Arab Emirates, and the United Kingdom. This is subject to the fact that the member banks have to ensure such types of accounts are only allowed as per extant Foreign Exchange Management Act (FEMA) regulations and adherence to the guidelines issued by the concerned regulatory departments of RBI from time to time. Also, all necessary anti-money laundering/ combating of financing of terrorism checks and compliance validation as per the rules have to be ensured by the remitter and beneficiary banks. NPCI has asked the members to comply with directions by April 30, 2023.

NPCI had been receiving requests from the UPI ecosystem as well as customers to allow non-resident accounts to transact through UPI. Notably, NRIs have requested the Government of India to allow UPI services on their Indian bank accounts linked to their international mobile numbers on several occasions, and the issue was raised many times on social media platforms. The decision came at a time when India is celebrating its 17th Pravasi Bharatiya Diwas, an event dedicated to the Indian Diaspora living abroad.

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