Non-resident Indians (NRIs) will be able to access Unified Payments Interface (UPI) on their international mobile numbers. The National Payments Corporation of India (NPCI) has allowed NRIs living in 10 countries to use UPI using their international mobile numbers for bank accounts which are classified as Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts. ET Online explains all you need to know.
UPI on international mobile numbers for NRIs: What has changed
Until recently, an NRI would require a valid Indian mobile number to set up a UPI ID for any application. When a user activates UPI from an application, the app then sends an SMS from the number confirming that the mobile number is linked to the bank account.
So, those who moved overseas had to keep their Indian mobile numbers active, if they wanted to use UPI in India. It would come with the cost of maintaining the phone number and paying an amount to recharge it every month. Now, these NRIs can use UPI with their international or non-Indian mobile numbers. This move will eliminate the maintenance cost of keeping an Indian mobile number active for NRIs.
Which NRIs can use UPI with their international mobile numbers?
During the first phase of the roll-out, UPI can be used by NRI mobile numbers having country codes of Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, United Arab Emirates, and the United Kingdom, as per an NPCI circular released on January 10, 2023.
UPI on international mobile numbers: What are the conditions?
1) Mobile numbers of NRIs must be linked with NRO or NRE accounts to activate UPI with international mobile numbers.
2) Moreover, the NRE or NRO accounts should be Know your Customer or KYC compliant to activate UPI, Praveena Rai, COO of NPCI told ET Now.
The member bank where the customer has an NRE or NRO account must ensure that the required KYC is done and other necessary regulations including the Foreign Exchange Management Act or FEMA are followed, NPCI said earlier.
“The onus of compliance will rest with the respective banks. Member banks must ensure NRE or NRO accounts are only allowed as per the extant FEMA (Foreign Exchange Management Act) regulations and adherence to the guidelines/instructions issued by the concerned regulatory departments of the Reserve Bank of India (RBI) from time to time," according to NPCI circular released earlier.
"All necessary anti-money laundering (AML)/combating of financing of terrorism (CFT) checks and compliance validation/account level validations as per the extant rules applicable under the regulatory guidelines shall be the responsibility of the remitter/beneficiary banks," it added.
When does it come into effect?
NPCI has asked all the members to comply with this directive by April 30, 2023.
Read more at: https://economictimes.indiatimes.com/wealth/save/upi-for-nris-with-international-mobile-numbers-who-can-use-how-it-will-benefit-explained/articleshow/99843620.cms