Is UPI Available for an NRI Account?
Discover how Non-Resident Indians can easily use India's UPI system. Get clear guidance on accessing and utilizing digital payments.
Unified Payments Interface (UPI) stands as India’s real-time payment system, enabling instant money transfers and payments through a mobile platform. For Non-Resident Indians (NRIs), financial interactions with India often involve specific account structures, such as Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts. UPI is generally available for NRI accounts, offering a streamlined method for transactions within India.
Eligibility for NRIs to Use UPI
To utilize UPI, Non-Resident Indians must maintain a bank account in India. Both Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts are typically eligible for UPI linking. An NRE account is primarily used for depositing foreign earnings into India, and the funds held within it, including interest, are fully repatriable, meaning they can be freely transferred back abroad. Conversely, an NRO account is intended for managing income earned in India, such as rent or dividends, and funds in this account are generally not fully repatriable and are subject to Indian taxation.
A crucial requirement for UPI registration involves linking a mobile number to the bank account. While traditionally an Indian mobile number was necessary, the National Payments Corporation of India (NPCI) now permits NRIs from specific countries, including the United States, United Kingdom, United Arab Emirates, Singapore, Australia, and Canada, to use their international mobile numbers for UPI, provided these numbers are registered with their NRE or NRO account. Banks facilitating these transactions must comply with “Know Your Customer” (KYC) regulations, ensuring that the NRI account is fully operational and meets all necessary identification and verification standards.
Setting Up UPI for NRI Accounts
Once an NRI meets the eligibility criteria, the process of setting up UPI involves a few straightforward steps. The first action is to download a UPI-enabled application on a smartphone. Popular options include BHIM, Google Pay, PhonePe, or specific banking applications provided by Indian banks. These applications serve as the interface for initiating and managing UPI transactions.
After installing the chosen app, the NRI must link their Indian bank account to the application. This typically involves selecting the bank from a provided list and verifying the linked mobile number through a One-Time Password (OTP) sent via SMS. This verification process confirms the user’s identity and the association between the mobile number and the bank account. Finally, a UPI PIN must be set up, which serves as a secure authentication code for authorizing all future transactions. This PIN is usually created using debit card credentials associated with the linked NRE or NRO account.
Important Considerations for NRI UPI Usage
When using UPI, Non-Resident Indians should be aware of transaction limits. Generally, the maximum transaction limit for UPI is ₹100,000 (one lakh Indian Rupees) per day for routine transfers. For new users, a lower initial limit of approximately ₹5,000 may apply for the first 24 hours after registration before the full daily limit becomes active. These limits are set by NPCI guidelines but can also vary slightly depending on the specific bank and the type of transaction.
Transactions made through UPI for NRI accounts are subject to regulatory oversight under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines. NRIs must ensure their banking activities comply with these regulations, particularly concerning the source and nature of funds. Additionally, maintaining updated KYC details with the bank is necessary to ensure continued service without interruption.