UPI: UAE NRIs need easier way to register on Indian payment network

Dubai: Indians travelling to the UAE now have it easier to pay using their domestic bank accounts using the UPI platform.

But UPI needs to be made much more easier for NRIs to start using the facility in a big way.

That’s because the UPI (Unified Payments Interface) registration processes for NRIs is still too complex, according to senior industry sources in the UAE.

What’s needed is a ‘simplified version’ – and one that ‘allows on-boarding through alternative KYC (know your customer) measures such as an Emirates ID and passport’, said Dr. Sahitya Chaturvedi, Secretary-General of the Indian Business & Professional Council.

“The registration should also permit linking of UAE-issued debit/credit cards or bank accounts for transactions in India.”

The UPI platform allows Indian bank account holders to send funds within the country – and these services are now being extended to Indian expats in select countries such as the UAE.

This week, UAE remittance platforms have been issuing alerts to their Indian customers that they can do money transfers from their UPI-linked NRE/NRO bank accounts – using their UAE mobile number. Whereas earlier, this could only be done using their mobile number in India registered to their accounts. (Local remittance apps also now allow ‘UPI transfers’ to India.)

But make the process even simpler and the user numbers will rise.

“The UPI has significantly transformed India’s domestic digital payments ecosystem,” said Chaturvedi, who is also Head of Internal Audit at Ajmal Perfurmes. “It’s cross-border functionality remains underdeveloped, particularly for NRIs.” 

The UPI services will soon be upgraded to allow resident Indians visiting the UAE to use just their smartphones when it comes to paying for services or shopping. They can do away with carrying around credit cards or cash.

This will come through the integration of UPI to the UAE’s digital payments network, according to the Indian Consul-General.

“The UPI (payment option) is getting popular in UAE with Indian visitors,” said Nilay Singh, the BFSI Convener at IBPC Dubai and CEO of SBI. “But UPI-linked payments to retailers in the UAE can be made only at those outlets who have been linked with it.”  

Even then, the majority of Indian visitors in the UAE still prefer to use credit cards rather than go through the UPI option.

This could be 'due to their familiarity with credit cards and their widespread acceptance, and perks like reward points," said Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services.

"Additionally, credit cards often offer deferred payment options and global usage without immediate deductions from bank accounts, which some travelers prefer for managing liquidity."

This is why UPI payments might need to match those 'rewards' credit card usage often provides.

"Yes, for cost-conscious travelers, UPI is generally less expensive - but provided it's accepted," said Ramachandran. "However, limited awareness, inconsistent global acceptance, and UPI’s evolving ecosystem might still make credit cards a more practical option for many Indian tourists."

“Rupee payment is boosted by signing of Local Currency Settlement (LCS) between India and UAE. “As per new amendments brought in by RBI, local businesses in UAE can open an SNRR (Special Non Repatriable Rupee) account,” said Singh. “However, rupee settlements in the UAE see limited usage and mostly seen in gold buying.”   

Indian banks issue Mastercard/Visa based International debit cards that can be used for payments and cash withdrawal at select ATMs

These are pre-loaded cards whereby withdrawals through select ATMs and payments can be done in a few currencies  

It is still the most prevalent mode of payment for Indian visitors.

Rupay cards can also be used for making international payments at select merchants.

Digital wallets and payment links for a specified amount generated by merchants can also be used.