- The RBI has announced the implementation of RuPay card and Unified Payments Interface (UPI) connectivity between India and Mauritius, as well as UPI connectivity between India and Sri Lanka.
- This programme seeks to strengthen financial integration and facilitate digital payments between inhabitants of the three countries.
Discussion: Rupee Integration with Neighbours
- Indian visitors to Mauritius can now use UPI to pay merchants there, while Mauritian visitors can use the Instant Payment System (IPS) app to make purchases in India.
- RuPay Adoption: The MauCAS card scheme in Mauritius will use RuPay technology, enabling banks to issue RuPay cards locally. These cards are accepted at ATMs and Point of Sale (POS) terminals in Mauritius and India.
- First Adoption: Mauritius becomes the first country outside Asia to integrate RuPay technology, allowing Indian RuPay cards to be accepted at ATMs and PoS terminals throughout the country.
- QR Code Payments in Sri Lanka: Indian visitors can use their UPI apps to make QR code-based payments at merchant locations in the island.
About RuPay and UPI
[A] RuPay Debit Cards
| Details | |
| Launch Year | 2012 |
| Conceived by | National Payments Corporation of India (NPCI) |
| Key Features | The first global card payment network in India.Wide acceptance at ATMs, POS devices, and e-commerce websites. |
| Security Measures | Highly secure network against phishingSupports electronic payments in all Indian banks and financial organisations. |
| International Acceptance | NPCI maintains relationships with Discover Financial and JCB for international acceptance. |
| Issuers | More than 1100 banks including public sector, private, regional banks, and cooperatives |
| Core Promoter Banks | SBI, PNB, Canara Bank, BOB, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank, HSBC |
[B] Unified Payments Interface (UPI)
| Details | |
| Launch | April 11, 2016 |
| Developed by | National Payments Corporation of India (NPCI) |
| Key Features | Enables simple, easy, and quick transactions using Unified Payments Interface (UPI) |
| Payment Methods | Direct bank payments using UPI ID or QR code scanningRequesting money from a UPI ID |
| Working | Transfers using UPI ID, mobile number, QR code, or Virtual Payment Address.Provides a consistent transaction PIN across apps, boosting cross-operability.Push and pull transactions are supported, as are over-the-counter payments and recurring payments like utility bills and subscriptions. |
Countries where UPI works
| Details | |
| Bhutan | Launched on July 13, 2021.NPCI International Payments Ltd (NIPL) has formed a partnership with Bhutan’s Royal Monetary Authority (RMA).The first country to implement UPI. |
| Oman | Launched on October 4, 2022.Accepts Indian RuPay cards at all OmanNet ATMs, POS, and e-commerce sites.Allows for reciprocal acceptance of Oman cards/MPCSS in the NPCI networks in India. |
| Mauritius | Connectivity enables Indian travellers to Mauritius to utilise UPI for local payments, and vice versa for Mauritian tourists visiting India via the Instant Payment System (IPS) app.Allows banks in Mauritius to issue RuPay cards using the MauCAS card network. |
| Sri Lanka | With digital payments connection, Indian visitors can use their UPI apps to make QR code-based payments at merchant locations in Sri Lanka. |
| Nepal | Mobile banking allows Nepali customers to make bank transactions to India using a universal payment interface (UPI) ID. |
| France | This year’s UPI service was introduced at the Eiffel Tower in Paris, France.NPCI International Payments Limited (NIPL) has formed a partnership with Lyra, a French e-commerce and proximity payment security leader. |
| Southeast Asia | NIPL and Liquid Group have reached an agreement to enable QR-based UPI payments in ten countries, including Malaysia, Thailand, the Philippines, Vietnam, Singapore, Cambodia, South Korea, Japan, Taiwan, and Hong Kong. |
Why such a move?
- Tourism Promotion: Making digital payments available through RuPay and UPI encourages Indian tourists to visit Mauritius and Sri Lanka by giving convenient payment choices.
- Financial Integration: The implementation of RuPay and UPI strengthens economic linkages between India, Mauritius, and Sri Lanka by allowing for cross-border transactions and financial services.
- Diversification (away from the Maldives): By providing modern payment infrastructure and possibilities equivalent to those found in major tourist destinations such as Mauritius and Sri Lanka, they can attract more visitors and diversify their tourism industries.
Source: https://www.thehindu.com/business/rupay-upi-payment-services-rolled-out-in-mauritius-sri-lanka/article67838467.ece