Goodbye Indian SIM! NRIs Can Now Use UPI in India with Their International Numbers

1. Introduction :

• The hassle NRIs faced with needing an Indian SIM for UPI, or relying on others for payments.

• This is no longer the case! Thanks to recent policy changes, NRIs can now link their NRE/NRO accounts to UPI with their international mobile numbers.

• Instant payments, bill management, shopping – all from abroad or during visits, without the SIM card scramble.

2. The Big Change: What's New for NRIs?

• The "No Indian SIM" Advantage: This is the core message previously, an Indian mobile number was mandatory. Now, designated international numbers are accepted.

• Who is behind this? Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) for enabling this, and how various banks are implementing it.

• NRE/NRO Accounts are Key: this facility is specifically for Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts held with Indian banks.

3. Are You Ready for NRI UPI?

• Must-Have:

  • An NRE or NRO account with an Indian bank that supports this feature.

  • An international mobile number from an approved countries.

  • Your international mobile number must be registered with your Indian bank account. This is crucial for OTP verification.

  • A UPI-enabled app that supports international number onboarding (e.g., PhonePe, Google Pay, BHIM, Paytm, or your bank's app).

• Supported Countries:

  • USA, UK, UAE, Australia, Canada, Singapore, Hong Kong, Qatar, Malaysia, Oman, Saudi Arabia, France.

  • While the initial NPCI circular listed 10 countries, banks like IDFC First Bank have expanded to 12. Advise readers to check with their specific bank for the most up-to-date list of supported countries.

4. How to Activate UPI as an NRI:

• Step 1: Ensure Your Bank Supports It: Confirm with your Indian bank (e.g., IDFC First Bank, ICICI Bank, SBI, HDFC Bank, Axis Bank, Federal Bank, etc.) that they offer UPI for international numbers.

• Step 2: Link Your International Number to Your NRE/NRO Account: If you haven't already, ensure your foreign mobile number is updated and linked to your NRE/NRO account with your bank.

• Step 3: Download a UPI-Enabled App: Choose a popular UPI app like PhonePe, Google Pay (the India version), BHIM, Paytm, or your bank's official UPI app.

• Step 4: Register/Login with Your International Number:

  • Open the app.

  • Enter your international mobile number (including the country code, e.g., +1 for USA, +971 for UAE).

  • The app will typically verify your number via SMS (OTP). Ensure international SMS is enabled on your foreign number.

• Step 5: Select and Link Your NRE/NRO Account: The app will fetch eligible accounts linked to your registered number. Select your NRE/NRO account.

• Step 6: Set Up Your UPI PIN: You'll likely need your debit card details to set up a secure UPI PIN.

5. Benefits for NRIs: Why This is a Game-Changer:

• Ultimate Convenience: Make payments from anywhere in the world, 24/7.

• No Indian SIM Hassle: Eliminate the need to buy or maintain an Indian SIM card just for transactions.

• Instant Transactions: Send and receive money in real-time, pay bills, shop online, or scan QR codes at merchants.

• Financial Control: Easily manage your finances in India, even when abroad.

• Cost-Effective: UPI transactions are typically free or incur minimal charges, unlike traditional international remittances which can be expensive.

• Secure & Reliable: Enjoy the same high-security standards as domestic UPI users.

• No Forex Charges for INR Transactions: When transacting in INR within India, there are no foreign exchange charges for the UPI payment itself.

6. What Can NRIs Do with UPI? (Use Cases):

• Pay utility bills (electricity, water, internet).

• Transfer money to family and friends in India.

• Make online purchases on Indian e-commerce sites.

• Scan QR codes at physical stores and restaurants during visits.

• Pay for travel and accommodation within India.

• Even manage investments (e.g., mutual funds) via UPI.

7. Important Considerations/Points to Remember:

• Check with Your Bank: Always verify with your specific Indian bank for the most accurate and up-to-date information on supported countries and processes.

• KYC Compliance: Ensure your NRE/NRO account is fully KYC compliant.

• Transaction Limits: Be aware of any daily or per-transaction limits set by your bank or the UPI system.

• Security: Remind users to keep their UPI PIN secure and be wary of phishing attempts.

• Tax Implications (Briefly): Mention that NRE accounts are tax-free in India, while NRO accounts are taxable. Advise linking PAN to avoid higher TDS.