Enabling UPI to inbound tourists set to boost cashless economy

In its recent bimonthly monetary policy review, the RBI has decided to enable UPI to inbound travellers to India.

As a result, travellers from G20 countries will soon be able to use Unified Payments Interface (UPI) in India.

It is a supporting statement to the 2023 Union Budget that highlighted the wider acceptance of digital payments with the remarkable performance of UPI clocking Rs 7,400 crore worth Rs 126 lakh crore in 2022.

Talking to Bizz Buzz, Shanti Lal Jain, MD & CEO of Indian Bank, says, "Enabling UPI to inbound travellers to India will showcase the potential of the UPI to the world and promote cashless economy."

Considering domestic inflation outlook, growth prospect of the economy and emerging global scenario, RBI has decided to hike the policy rates by 25 bps. The outcome is in line with the market expectations and gives confidence on the RBI's efforts to keep the economy resilient, support growth during the present global uncertainties and to control the inflation, he said.

Expansion of TReDS will further improve cash-flows to the MSMEs. Enabling UPI to inbound travellers to India will showcase the potential of UPI to the world and promote cashless economy."

Discussion papers on penal charges on loans will bring more uniformity in aligning of charges, reduction of customer grievances and will bring better credit discipline. Impetus for climate risk and sustainable finance will further strengthen the banking sector.

Wider participation by more entities can keep the receivable discounting pricing under check as the volume on these platforms increases. Further, flexibility to allow re-discounting by existing holders of such discounted receivables will aid liquidity of participants. Insurance coverage for the discounted receivables can also enhance the volumes and further reduce the pricing of such insured receivables, however the appetite of insurance companies to issue such coverage remains to be seen, he added.

Dilip Modi, Founder, Spice Money, said, "We welcome the move by the Indian government that travellers from G20 countries will soon be able to use UPI (Unified Payments Interface) in India."

This will allow users to make payments to merchants, transfer money and make other transactions in India. This is an outstanding move by the Government to highlight the country's digital growth, he added.

UPI has been a game changer for India and this will only highlight to the world that India is leading the way in terms of technology developments. It has become ubiquitous in the country due to its simple, fast, secure and convenient method of transacting, he added.

Enabling UPI to inbound travellers to India will showcase the potential of UPI to the world and promote cashless economy

- Shanti Lal Jain, MD & CEO of Indian Bank