CEO & Founder of Aikyam Capital Investors, Nilesh Choudhary, underscores the transformative role UPI plays in the lives of NRIs. The ease of sending funds for critical needs like healthcare and education from abroad is now a reality, thanks to UPI’s seamless functionality.
Traditionally, NRIs faced challenges with various methods of sending money back to India, each fraught with complexities. However, UPI has emerged as a game-changer, simplifying the process by allowing quick and easy transfers directly from a mobile device, as highlighted by Kunal Varma, CEO and Co-Founder of Freo.
what are the advantages that UPI brings to NRIs?
- Simplified Transactions: UPI eliminates the need for lengthy bank account details, allowing NRIs to use a UPI ID, QR code, or phone number for transfers. This significantly reduces the chance of errors.
- Cost-Effective Transactions: Lower transaction costs make UPI an attractive option for NRIs, providing a cost-effective way to manage their finances across borders.
- Enhanced Security: UPI ensures enhanced security with a two-factor authentication system, adding an extra layer of protection compared to traditional methods.
How NRIs can make UPI Payments
For NRIs looking to embrace UPI, the process involves a few key steps:
- Bank Account Requirements: Have an NRO or NRE account with a bank in India supporting UPI transactions.
- Mobile Number Registration: Register your foreign mobile number with your bank account for UPI app verification.
- Select a UPI App: Choose from various UPI-enabled apps, including popular ones like Google Pay, PhonePe, and Paytm.
- Installation and Setup: Install the chosen app, verifying your mobile number during setup. Ensure compatibility with your foreign number.
- Link Bank Account: Connect your NRO/NRE account to the UPI app, usually through automatic retrieval of account details.
- Set UPI PIN: Establish a UPI Personal Identification Number (PIN) for transactions, typically by entering an OTP sent to your registered mobile number.
- Start Transacting: Once set up, use UPI for payments, transfers, bill payments, and online purchases.
However, it’s crucial to be aware of transaction limits and regulatory requirements, particularly those related to foreign exchange regulations under FEMA.
Kunal Varma advises users to stay informed, acknowledging potential challenges due to restrictions on foreign mobile numbers or internet banking limitations on NRO/NRE accounts. Keeping abreast of changes in regulations and UPI features is key, and consulting with your bank or app provider is advisable.
The integration of UPI with over 10 countries showcases India’s strategic vision for economic resilience, signaling a new era where NRIs can navigate financial transactions with unprecedented ease and efficiency.
Read more:
Revolutionizing Cross-Border Transactions: UPI Payments Reach UAE, RuPay-JAYWAN Card Linked
List of Countries Where UPI Can Be Used To Make Digital Payments