BANGALURU: The RBI Governor Shaktikanta Das, during the RBI@90 Global Conference on ‘Digital Public Infrastructure and Emerging Technologies,’ highlighted the vast potential of India’s Unified Payments Interface (UPI) in the realm of cross-border payments.
He said as India continues to lead in digital financial innovation, UPI is poised to become a faster and more cost-effective alternative to traditional remittance channels, particularly for small-value personal remittances.
In his address, Shaktikanta Das outlined how UPI, originally designed as a real-time payment system for domestic transactions, has rapidly evolved into a robust and versatile platform.
Beyond national borders
Its success within India has garnered global attention, and the Governor now sees an opportunity for UPI to extend its impact beyond national borders.
With remittances being the second-largest source of external financing for India, projected to reach $124 billion in 2024 and $129 billion in 2025, the potential for UPI to streamline and reduce the cost of these transactions is significant.
Cross-border payments
The Governor proposed that the journey toward utilising UPI for cross-border payments could start with small-value personal remittances.
This initiative could be implemented swiftly, providing a practical solution for millions of people who rely on these transfers.
By offering a cheaper and quicker alternative to existing channels, UPI could revolutionise the global remittance market, much like it has done within India’s domestic payment ecosystem.
Financial inclusion
Das also linked the potential of UPI with the broader vision of Digital Public Infrastructure (DPI) in India, which has driven remarkable levels of financial inclusion in less than a decade.
He highlighted that DPI, developed in the public sector but accessible to private innovators, has democratised access to financial services, reduced transaction costs, and maintained market competition through interoperability.
Looking ahead, the Governor expressed optimism about the future of India’s digital financial services.
ULI platform
He pointed to the upcoming nationwide launch of the Unified Lending Interface (ULI), another ambitious platform that could transform credit access by digitising the flow of financial information.
Das suggested that the combination of UPI and ULI, along with India’s broader DPI framework, would continue to propel the country’s financial sector into new frontiers.
In conclusion, Governor Das’s vision for UPI as a global game-changer for cross-border payments underscores the RBI‘s commitment to fostering a financial ecosystem that is not only innovative but also inclusive and customer-centric.
As UPI moves closer to becoming a key player in international remittances, its success could redefine how money moves across borders, offering a glimpse into the future of global finance.
