India Observers

  In a major milestone for India’s digital payments ecosystem, the Unified Payments Interface (UPI) crossed 700 million transactions in a single day for the first time on August 2, 2025 . This marks the highest-ever daily transaction volume since the platform's launch. The surge reflects growing nationwide adoption of UPI for everything from small retail payments to large business transactions. Experts credit the increase to rapid smartphone penetration, ease of use, and the integration of UPI across government, financial, and commercial platforms. With this milestone, UPI further cements its role as a cornerstone of India’s digital economy and a model for real-time payments systems globally.

  In a significant step towards globalizing India's digital payment infrastructure, PayPal has partnered with the National Payments Corporation of India (NPCI) to launch a Unified Payments Interface (UPI)-enabled global payments platform. This collaboration aims to allow Indian users and international merchants to leverage the speed, convenience, and security of UPI for cross-border transactions. The integration will enable seamless real-time payments across countries, providing Indian users with more options for global e-commerce and digital transactions. It also marks a milestone in UPI's global expansion and aligns with India’s push to internationalize its indigenous payment systems. This move is expected to enhance financial inclusion, simplify international transactions for small businesses and freelancers, and further solidify India's role as a leader in fintech innovation.

 India and Namibia have signed a Memorandum of Understanding (MoU) to introduce the Unified Payments Interface (UPI) in the southern African nation. The agreement marks a key step in expanding India’s digital payment infrastructure globally. UPI, developed by the National Payments Corporation of India (NPCI), enables real-time money transfers through mobile platforms.  With this partnership, Namibia aims to enhance its digital financial ecosystem, improve cross-border transactions, and boost financial inclusion. This collaboration highlights India’s growing role in exporting fintech innovations to developing economies.

  The National Payments Corporation of India (NPCI) is working on an Internet of Things (IoT)-ready version of the Unified Payments Interface (UPI), paving the way for automated digital payments through smart appliances, connected vehicles, wearables, and other IoT devices. This next-gen UPI will enable frictionless machine-to-machine payments without human intervention, ideal for scenarios like paying tolls through smart cars or settling bills via connected refrigerators. The move aligns with India’s digital vision and is expected to revolutionize micro-payments across the smart tech ecosystem.

  India and Cyprus have signed a Memorandum of Understanding (MoU) to introduce Unified Payments Interface (UPI) services in the island nation. The agreement marks a significant step in strengthening bilateral fintech collaboration and expanding India's digital payment ecosystem globally. UPI, developed by the National Payments Corporation of India (NPCI), enables instant, real-time mobile payments and has revolutionized digital transactions in India. With Cyprus becoming the latest partner, this move is expected to boost cross-border financial connectivity and support Indian tourists, businesses, and diaspora in the region. This partnership reflects India’s growing influence in the global digital finance landscape and aligns with its vision of making UPI a global standard for fast and secure payments.

  India’s Unified Payments Interface (UPI) is on the verge of surpassing global payments leader Visa in daily transaction volumes. With its real-time, zero-cost model and widespread adoption, UPI has transformed digital payments in India, enabling over 10 billion transactions in a single month. The platform’s ease of use and seamless integration with banks, fintechs, and merchants have contributed to its explosive growth. Experts suggest that if the current momentum continues, UPI could soon become the world’s leading payment system by daily volume, overtaking Visa — a major milestone for India’s digital economy.

  According to the Reserve Bank of India (RBI), India contributed 48.5% of the global real-time payment transactions in 2023, largely driven by the widespread use of the Unified Payments Interface (UPI). This highlights India’s leadership in the digital payment ecosystem. The RBI credited UPI’s ease of use, interoperability, and increasing adoption across urban and rural areas for the surge in transaction volumes. India processed over 100 billion real-time transactions last year, setting a global benchmark. UPI continues to expand internationally, with countries like Singapore, UAE, and France beginning to integrate with the system. The RBI emphasized that India’s digital payment infrastructure is a model for other developing economies aiming for financial inclusion and transparency.

  In a significant move aimed at enhancing regional economic integration, Prime Minister Narendra Modi has proposed linking India’s Unified Payments Interface (UPI) with the payment systems of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) nations. The offer was made during a recent BIMSTEC summit, where digital cooperation was highlighted as a key area of focus. PM Modi emphasized the potential of digital public infrastructure like UPI to transform financial inclusion and boost cross-border trade. “India is ready to share its experience and technology to help build seamless and secure digital payment ecosystems across the BIMSTEC region,” he said. The proposal is expected to foster greater financial connectivity among member states—Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, and Thailand—enhancing ease of business, tourism, and remittances. Several countries have already expressed interest in integrating with UPI, which has seen ...

  India’s Unified Payments Interface (UPI) has achieved a new milestone, processing transactions worth a record ₹24.77 lakh crore in March 2025. This marks a significant jump in digital payments, reinforcing UPI's dominance in the country’s financial ecosystem. According to the latest data, the average daily transactions during March stood at ₹79,903 crore, highlighting the growing adoption of cashless payments. The surge can be attributed to increased merchant transactions, peer-to-peer transfers, and the continued push for financial digitization. Experts believe that the expansion of UPI services, including credit on UPI and international transactions, has played a key role in this remarkable growth. With ongoing innovations and greater user trust, UPI is expected to set new records in the coming months.

  India and the UAE have a long-standing relationship that has seen significant growth and diversification in recent years. The bilateral agreements, such as the  Comprehensive Economic Partnership Agreement (CEPA)  signed in February 2022, have boosted trade and investment between the two countries. The UAE is a significant investor in India’s economy, with substantial inflows of foreign direct investment across various sectors. Companies like DP World, Sharaf, and Lulu Group have established strong footholds in India, contributing to job creation and economic development. Similarly, Indian companies have expanded their presence in the UAE, leveraging its strategic location as a gateway to the Middle East and Africa. The substantial Indian diaspora in the UAE, comprising nearly 30% of the country’s population, underscores the strong people-to-people ties and cultural affinity between India and the UAE. Cities like Dubai and Sharjah have emerged as preferred destinations ...

The National Payments Corporation of India (NPCI) is introducing something called 'UPI for Secondary Market' from January 1, 2024. This is a big step in how you buy and sell stocks. Imagine UPI, the system we use for quick payments. It's now going to be used for trading stocks in the market. But first, they're testing it with a small group of people to see how well it works. Here's what's happening, when you want to buy stocks, you can use UPI to block some money in your bank account. This money stays in your account until your stock trade is confirmed. When the trade is done, that money is used to pay for the stocks. If you sell stocks, the money you get will be sent to your account the next day. This new system is like ASBA, a method used when people apply for IPOs. It's been really helpful in making the process of buying new shares faster and simpler. In this trial phase, people with HDFC Bank and ICICI Bank accounts can try it out. The trading app Groww ...

 India recently integrated UPI with Singapore’s PayNow. After getting more international demands, UPI may also launch in UAE, Mauritius, and Indonesia. India’s Unified Payments Interface (UPI) and Singapore’s PayNow were integrated last week to enable real-time funds transfer between citizens of both countries. UPI may also be connected with three more countries – UAE, Mauritius as well as Indonesia. Mehul Mistry, global head of strategy, digital financial services , and partnership at online payments startup Wibmo, told Mint that if Singapore launches rapid money transfers, countries like the UAE, Mauritius, and Indonesia are likely to follow suit. The expansion of India’s top-notch UPI digital payment infrastructure, which will make it simpler for Indian users to perform business abroad, is something to be proud of, he said. In 2019, financial services company PayU purchased Webmu. A cross-border person-to-person (P2P) payment system has been introduced with Singapore as the firs...

 The IMF has praised India’s digital payment systems including UPI, CBDC, IMPS as well as its highest growth rate among all the major economies in the world. The IMF praised India’s progress on digital payment systems including the Central Bank Digital Currency (CBDC) and Unified Payments Interface (UPI), saying other countries can learn from it.  Kristalina Georgieva, the MD of the IMF, issued a warning, noting that “every new financial technology generally comes with risks.”  The majority of IMF member nations are currently actively assessing CBDCs that potentially offer significant benefits, she continued. According to International Monetary Fund (IMF) Managing Director Kristalina Georgieva, India will alone account for 15% of the global growth in 2023, maintaining its status as a relative “bright spot” in the global economy. The fifth-largest economy in the world, which was saved from pandemic lows by digitization, will now be able to maintain its economic momentum t...