As UPI (Unified Payments Interface) payments continue to surge in the country, the NPCI (National Payments Corporation of India) is now planning to enable UPI-based payments for inward international transactions.
“The Virtual Payments Address (VPA) of the consumer is connected to an underlying bank account, therefore inward international remittance transfers can now also be settled through UPI,” reports ET quoting two bankers close to the developments.
The transactions, which were being done through Immediate Payment Service (IMPS) and or National Electronic Fund Transfer (NEFT), can now also be done using UPI.
The report explained the process, stating “Funds remitted to India land with a ‘landing bank’ from where it gets transferred to the beneficiary’s bank account. Till now, banks were using IMPS and NEFT for such transfers, but with UPI it would open up another channel for instant settlements.”
The banker added, “This would also mean that international remittance players like MoneyGram, Western Union and others will get access to UPI for settlements which, as of now, are using IMPS.”
The change in payment method is also not a technical hindrance for the banks, as the banks which are on the IMPS network have a direct integration with NPCI already. “The fund transfer agents were consuming my IMPS/NEFT APIs, but for now I will just have to tweak my back end to open up UPI which will be an additional field for us,” the report quoted unnamed banker as saying.