Unified Payments Interface (UPI) in Qatar: UPSC Current Affairs

Description

Copyright infringement not intended

Picture Courtesy: THEHINDU

Context

The National Payments Corporation of India (NPCI) has partnered with Qatar National Bank (QNB) to implement UPI in Qatar, making it the eighth country to adopt India’s real-time payment system

What is UPI?

Definition: Real-time mobile payment system developed by NPCI.

Functionality: Allows users to link multiple bank accounts to a single app for seamless peer-to-peer and merchant transactions.

Technology: Built on Immediate Payment Service (IMPS) and integrates Aadhaar Enabled Payment System (AePS).

Key App: BHIM (Bharat Interface for Money) – a UPI-based mobile application.

Features of UPI

Instant Transfers: 24/7 money transfers across banks.

Single App Integration: Access multiple bank accounts on one platform.

Multiple Payment Methods: Mobile number, Virtual Payment Address (VPA), account number.

QR Code Payments: Quick and secure merchant transactions.

Recurring Payments: AutoPay for utilities and subscriptions.

Peer-to-Peer Requests: Hassle-free person-to-person collections.

Security: Two-factor authentication and privacy via Virtual Payment Address.

UPI’s Transformation of India’s Digital Payments Ecosystem

Scale and Adoption:

Rs 24.03 lakh crore via 18.39 billion transactions in June 2025.
Serves 491 million users, 65 million merchants, 675 banks.
Powers 85% of India’s digital payments and nearly 50% of global real-time payments.

Interoperability: Platform-agnostic; users can transact across different apps and banks.

Financial Inclusion: Accessible, low-cost, and real-time transfers empower small vendors, MSMEs, and first-time digital users.

Global Diplomacy: Now live in UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar. France marks entry into Europe; Qatar benefits Indian tourists and diaspora.

Digital Foundation Behind UPI

JAM Trinity:

Jan Dhan Yojana: 55.9 crore bank accounts for financial inclusion.
Aadhaar: 142 crore biometric-linked IDs for secure authentication.
Mobile Connectivity: Fast internet and affordable data (Rs 9.34/GB in 2022).

Infrastructure: 4.74 lakh 5G base stations; 116 crore mobile users.

These pillars enabled India to build the world’s largest real-time payment system and set a global benchmark.

Strategic Significance of UPI’s Global Expansion

Economic Diplomacy: Facilitates cross-border payments and remittances.

Tourism and Diaspora: Simplifies payments for Indian tourists and expatriates.

Global Digital Leadership: Positions India as a model in real-time digital finance.

BRICS and Global South Strategy: Potential for wider adoption across emerging markets.

Source: THEHINDU

PRACTICE QUESTION

Q. Cross-border digital payment systems are the new frontier of global economic cooperation. 150 words

Frequently Asked Questions (FAQs)

The Unified Payments Interface (UPI) is an instant real-time payment system developed by NPCI to facilitate inter-bank transactions via mobile phones.

NIPL is the international arm of NPCI, focused on exporting India's indigenous digital payment platforms, including UPI and RuPay, to other countries.

UPI is accepted in countries like Bhutan, France, Nepal, Singapore, Sri Lanka, Mauritius, the UAE, and Qatar.