According to a report from CNBC Awaaz, the Unified Payments Interface (UPI) system is set for a significant update that will permit transactions in dollars. This will enable seamless transaction across borders in respective currencies.
This shift is being actively discussed with SWIFT by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI). UPI will be positioned as the most convenient and secure avenue for cross-border digital transactions through the integration, according to the report.
SWIFT is a globally recognized system that facilitates inter-country financial transactions through SWIFT, which is also known as Society for Worldwide Interbank Financial Telecommunication. The integration will simplify and streamline the process of conducting international business through UPI.
Shaktikanta Das, RBI Governor, announced pivotal decisions regarding the UPI during the Monetary Policy Committee (MPC) meeting on December 8. In addition, effective immediately, the UPI payment limit has been raised from 1 lakh to 5 lakh for hospitals and educational institutions.
A maximum of $1 lakh has also been set for e-mandates, commonly known as auto-debits. You can use this to buy mutual funds via systematic investment plans (SIPs) and to pay insurance premiums on a regular basis. It is also compatible with credit cards.
UPI auto payments over 15,000 used to require a one-time password (OTP)-based authentication. Now, adding an additional factor of authentication (AFA) is not required for transactions up to 1 lakh.
India’s pioneering mobile payment system, UPI, offers users the ability to make instant payments round-the-clock via a Virtual Payment Address (VPA).