In a decisive move to modernize India’s financial ecosystem and connect its vast population at home and abroad, the government and key financial institutions are rolling out major upgrades across the payments landscape. From enabling real-time cross-border remittances using Unified Payments Interface (UPI) and the global postal network, to empowering non-resident Indians (NRIs) with seamless digital transactions, and digitizing over 165,000 post offices for UPI payments—these developments signal a bold and urgent leap toward an inclusive digital economy.
At the heart of this transformation is the rapid expansion of the UPI across borders, rural areas, and critical financial services. Whether it is the Department of Posts partnering with NPCI International to bring UPI to the global remittance stage, or Bank of Baroda and AU Small Finance Bank launching international UPI access for NRIs, the message is clear: India is racing to eliminate digital barriers and redefine access to money.
These initiatives are not just upgrades; they’re essential infrastructure shifts designed to close the digital divide, boost financial inclusion, and empower over a billion Indians and millions of overseas citizens with the tools to participate fully in the digital economy. As UPI becomes the backbone of both domestic and cross-border transactions, the urgency to modernize is no longer optional—it’s imperative.
India Post partners NIPL to simplify global remittance
In an effort to revolutionize the way money is sent to India from abroad, the Department of Posts (DoP), under the Ministry of Communications, Government of India, has entered into a non-disclosure agreement (NDA) with NPCI International Payments Limited (NIPL), the global arm of the National Payments Corporation of India. This collaboration aims to modernize inward remittance systems by integrating UPI with the Universal Postal Union’s (UPU) Interconnection Platform (IP).
The UPU Interconnection Platform facilitates near real-time exchange of postal payment messages between designated operators (DOs). It offers application programming interfaces (APIs) that allow DOs to connect their national systems, enabling instant payments right up to the point of sale.
This partnership is designed to establish a fast, secure, and cost-effective remittance pathway for the global Indian diaspora. By leveraging the expansive postal network and UPI’s digital infrastructure, the project promises to significantly lower transfer costs, making remittances more affordable and accessible, especially in underserved regions where banking access is limited.
“NIPL is committed to expanding the reach of UPI globally and enabling seamless cross-border payments. We believe that this partnership with the Department of Posts will unlock significant opportunities for financial inclusion and enhance the remittance experience for millions of Indians worldwide,” Ritesh Shukla, CEO of NPCI International Payments Limited (NIPL), said in a statement.
“This collaboration aligns with our commitment to providing accessible and affordable financial services to all citizens, including the Indian diaspora. By leveraging the UPU Interconnection Platform and the UPI network, we are confident that we can create a truly transformative remittance solution,” said LK Dash, Deputy Director General, International Relations and Global Business, Department of Posts.
According to the statement, this cooperation delivers several critical advantages. By combining UPI and the UPU Interconnection Platform, the cost of sending money to India is expected to drop considerably, offering major relief to Indian workers overseas. With the global reach of postal services, even remote areas will gain access to digital remittances, promoting deeper financial inclusion.
The collaboration also ensures safe and dependable transactions by utilizing UPI’s proven security features alongside the trusted postal system. Backed by real-time technology, this system enables immediate fund transfers, ensuring families in India receive money without delay. This strategic initiative is expected to be a leap toward building a more inclusive and efficient global payment ecosystem for millions of Indians worldwide.
All India post offices to accept UPI payments soon
The partnership with UPI comes at a time when the DoP is undergoing a major digital transformation. The DoP has rolled out ‘IT 2.0 – Advanced Postal Technology‘ (APT), a digital upgrade in the Department’s modernization journey to each of its 165,000 post offices, aligning with the government’s vision of ‘Digital India’ and ‘Make in India,’ which seeks to digitize government services and improve digital literacy nationwide.
Communications Minister Jyotiraditya M. Scindia expressed his excitement in an X post about the nationwide rollout of Advanced Postal Technology (APT) by India Post, describing it as a historic milestone in India’s digital journey. He highlighted that with an investment of ₹5800 crore (about $699 million) under the IT 2.0 program, APT would transform India Post into a world-class public logistics organization.
The DoP has also announced that all post offices across India will be equipped to accept UPI-based digital payments. This initiative is part of the IT 2.0 modernization program, which represents a major overhaul of the department’s technology infrastructure, introducing dynamic QR code systems and significantly improving the speed, safety, and ease of postal transactions.
With 165,000 post offices—many of them serving remote and rural regions—India operates one of the most extensive postal networks globally. Until now, these post offices have been largely left out of the digital payments ecosystem due to the lack of UPI integration, which limits access to real-time, interbank digital transactions.
While the India Post Payments Bank (IPPB) has contributed meaningfully to advancing financial inclusion, the inability to process digital payments at postal counters has remained a key obstacle for nearly 500 million customers. The IT 2.0 upgrade directly addresses this gap, enabling real-time dynamic QR code generation for each transaction. This will allow customers to pay instantly using any UPI-enabled app, making services more accessible and efficient.
The new digital payment system will cover a wide range of services, including buying postage stamps, booking parcels, and accessing various financial and non-financial postal services. This is not just an upgrade; it’s an urgent and essential leap forward in making government services more inclusive, efficient, and future-ready.
This transformation is a critical step toward closing the digital divide in India. By enabling UPI payments at all post offices, the department is empowering millions of citizens, especially those in underserved areas, to become active participants in the digital economy.
Banks expand UPI services for NRIs
In a major leap toward digitizing international transactions, state-run Bank of Baroda has introduced its new UPI app, ‘bob e-Pay’ (or ‘bob इ Pay’). The app is designed to offer users seamless, secure, and real-time digital payments across borders, marking a critical advancement in the bank’s global payment capabilities. With the launch of bob e-Pay, Bank of Baroda is reportedly expanding access to three key features: global UPI acceptance, foreign inward remittances, and UPI services for NRIs and Indian travelers abroad.
This means users can now scan international merchant QR codes and make payments directly from their Indian bank accounts. To ensure transparency, each transaction will clearly display the amount in both the local foreign currency and INR, alongside the applicable exchange rate and service fees, thus empowering customers with full visibility.
For non-resident Indians (NRIs), the app allows sending and receiving funds using UPI. During visits to India, NRIs can link their NRE or NRO accounts to the app using an Indian mobile number, allowing them to make merchant payments and peer-to-peer transfers effortlessly. Non-resident external (NRE) and non-resident ordinary (NRO) accounts are bank accounts for NRIs to manage their finances in India.
Simultaneously, AU Small Finance Bank (AU SFB) has reportedly expanded its digital services by enabling UPI access for NRE and NRO account holders using international mobile numbers. This timely move significantly improves ease of access for non-resident Indians (NRIs) seeking to connect with India’s fast-growing digital payments infrastructure.
NRIs across 12 countries, including the United States, United Kingdom, United Arab Emirates, Canada, Australia, and Singapore, can now link their AU SFB accounts to UPI without the need for an Indian SIM card. This enhancement allows for instant, secure, and hassle-free payments, from utility bills to peer-to-peer transfers and merchant transactions within India.
By removing the mobile number restriction, AU SFB is offering its eligible NRI customers the freedom to register for UPI services directly with their international numbers. Customers can now enjoy uninterrupted access to India’s digital payment ecosystem without additional fees or telecom-related barriers.
This rollout marks a critical step in expanding financial inclusion and empowering NRIs with real-time digital transaction capabilities, delivering on the urgency to connect Indians abroad with seamless financial tools at home.
AssetPlus launches UPI AutoPay
In a push toward simplifying mutual fund investing, AssetPlus, a digital platform for Mutual Fund Distributors (MFDs) in India, has reportedly introduced UPI AutoPay for Systematic Investment Plans (SIPs) through a seamless integration with the Bombay Stock Exchange (BSE). This upgrade enables investors to authorize recurring SIP payments directly through their preferred UPI apps, such as Google Pay (NASDAQ: GOOGL), PhonePe, or Paytm, bringing speed, simplicity, and transparency to the SIP mandate process.
A Systematic Investment Plan (SIP) is a structured way to invest in mutual funds by contributing a fixed amount regularly, typically monthly or quarterly. Rather than investing a large sum all at once, SIPs allow investors to build their investment portfolio gradually. This method encourages disciplined investing and can help reduce the impact of market fluctuations through a strategy known as rupee cost averaging. SIPs are often used for long-term financial goals like retirement, education, or wealth creation.
Until now, SIP registrations often depended on time-consuming net banking eMandates or manual paperwork, or methods that are prone to delays, failures, and drop-offs. The introduction of UPI AutoPay aims to simplify this journey. Using just their UPI ID and PIN, investors can complete SIP mandate approvals in minutes.
“Our goal at AssetPlus has always been to remove friction from the investment process,” said Awanish Raj, Co-founder and CTO, AssetPlus. “UPI AutoPay aligns perfectly with that vision, transforming what was once a multi-day, cumbersome process into a secure, mobile-first experience that can be completed in a matter of minutes.”
This rollout aligns with India’s larger push toward a fully digital financial ecosystem, championed by the National Payments Corporation of India (NPCI), which is expanding UPI-based recurring payments across sectors. With this launch, AssetPlus aims to ensure that mutual fund investing is not left behind in the nation’s digital payments revolution, while providing mutual fund distributors with the tools they need to onboard clients faster and more efficiently.
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Source: https://coingeek.com/india-boosts-digital-payments-with-new-upi-integrations/
