What changed
RBI has amended the Master Directions on PPIs to permit issuance of PPIs to foreign nationals and NRIs visiting India, enabling UPI access for merchant payments. Initially, this facility is available to travellers from G-20 countries at select international airports, with plans to extend to all entry points.
What it means for you
Banks and non-bank PPI issuers can now offer UPI-linked prepaid instruments to inbound foreign visitors, opening a new customer segment. This move simplifies digital payments for tourists, reducing reliance on cash and enhancing India's payment infrastructure. Lenders must update their PPI issuance processes to comply with the amended Master Directions.
What you must do
- Update PPI issuance policies to include foreign nationals and NRIs visiting India as eligible users.
- Ensure UPI-enabled PPIs are configured for merchant payments (P2M) only, as per the initial scope.
- Coordinate with NPCI for technical integration and compliance with the amended Master Directions.
- Prepare for phased rollout: start with G-20 travellers at select airports, then expand to all entry points.
Who it affects
All PPI issuers (banks and non-banks), National Payments Corporation of India (NPCI), Foreign nationals and NRIs visiting India, Merchants accepting UPI payments
Which travellers are eligible for this UPI facility initially?
The facility is initially extended to travellers from G-20 countries at select international airports for merchant payments while in India.
When did this circular take effect?
The instructions came into effect immediately from the date of the circular, February 10, 2023.
Will this facility be available at all entry points in the future?
Yes, RBI plans to enable this facility across all entry points in the country going forward.