Top Stories UPI Transactions for NRIs: A Comprehensive Guide Understanding how NRIs can utilise UPI is important, especially as the global landscape evolves toward more digital and immediate banking solutions By Manu Sharma – On November 4, 2024 12:40 pm – 2 mins read In an era of digital banking, the Unified Payments Interface ( UPI ) has emerged as a transformative financial tool, particularly for Non-Resident Indians ( NRIs ) seeking to manage their transactions seamlessly from abroad. To activate UPI on an international mobile number, NRIs must follow a straightforward process. The steps include linking their international number to their NRI bank account, downloading the UPI app, completing the onboarding process, verifying the mobile number, creating a new UPI ID, selecting the bank account number, and finally submitting the details. This procedure typically takes only a few seconds, allowing for quick access to digital transactions. NRIs can enjoy a variety of benefits when using UPI.

They are allowed to send money in Indian Rupees (INR) to Indian merchants and UPI IDs, link their international numbers to NRE/NRO accounts, make payments by scanning QR codes, and even send money directly using bank account numbers if the recipient does not have a UPI ID. Get a Copy of Become a GST Pro: Advanced Training on GSTR 9 and 9C, Click here Importantly, NRIs do not need to re-register when travelling to India and can create multiple UPI IDs for different bank accounts. However, there are specific restrictions that NRIs should be aware of. Transactions in foreign currency are prohibited, and UPI transactions are only allowed in INR. NRIs cannot link multiple accounts to a single UPI ID, as each account requires its unique UPI ID. Transfers from NRO to NRE accounts are also not permitted, nor can payments be made using contact numbers to non-Indians. It is essential to note that only the primary account holder can generate or access the UPI ID for joint accounts. UPI Money Transfer Process for NRIs For those looking to send or receive money using UPI, the process is user-friendly.

For instance, if Mr. A wishes to send money to family or friends in India, he can simply open his UPI app, enter the recipient’s UPI ID or scan their QR code, specify the amount, and confirm the transaction. Conversely, if he wants to receive money, he can share his UPI ID or VPA with the sender, who will initiate the transfer. Get a Copy of Become a GST Pro: Advanced Training on GSTR 9 and 9C, Click here A range of countries and banks now support UPI transactions for NRIs, including Australia, Canada, the UK, and the USA. Notable banks facilitating these transactions include Axis Bank, Canara Bank, HDFC Bank, and others. Various UPI apps, such as BHIM and PhonePe, are also available to enhance the user experience. As digital transactions continue to redefine banking, understanding the nuances of UPI can empower NRIs to manage their finances efficiently and effectively, bridging the gap between their life abroad and their roots in India.