RBI permits UPI access to foreign nationals and NRIs visiting India from G-20 countries at select international airports

The Reserve Bank of India (“RBI”) has issued a Press Release on “Issuance of PPIs to Foreign Nationals / Non-Resident Indians (NRIs) visiting India” allowing access to Unified Payments Interface (“UPI”) to foreign nationals and NRIs visiting India.

This facility will be extended to travellers from the G-20 countries at select international airports for their merchant payments (P2M) while they are in the country. Going forward, this will be enabled across all entry points in the country.

To this effect, the Master Directions on Prepaid Payment Instruments, 2021 (“Master Direction”) has been amended to insert Paragraph 10.3 which mandates the following:

1. Banks / Non-banks permitted to issue PPIs can issue INR denominated full-KYC PPIs to foreign nationals / NRIs visiting India (to start with, this facility will be extended to travellers from the G-20 countries, arriving at select international airports). Such PPIs can also be issued in co-branding arrangement with entities authorised to deal in Foreign Exchange under FEMA;
2. The PPIs should be issued after physical verification of Passport and Visa of the customers at the point of issuance. The PPI issuers have to ensure that such information and record thereof are maintained with them;
3. The PPIs can be issued in the form of wallets linked to UPI and can be used for merchant payments (P2M) only;
4. Loading / Reloading of such PPIs should be against receipt of foreign exchange by cash or through any payment instrument;
5. The conversion to Indian Rupee shall be carried out only by entities authorised to deal in Foreign Exchange under FEMA;
6. The amount outstanding at any point of time in such PPIs shall not exceed the limit applicable on full-KYC PPIs;
7. Provisions of paragraph 13 on validity and redemption, as applicable, shall be adhered to. The unutilised balances in such PPIs can be encashed in foreign currency or transferred ‘back to source’ (payment source from where the PPI was loaded), in compliance with foreign exchange regulations;

Source: Reserve Bank of India