Introduction and Significance:

The Prime Minister of India recently inaugurated the launch of Unified Payment Interface (UPI) services in Sri Lanka and Mauritius, and RuPay card services in Mauritius. This was executed in collaboration with NPCI International Payments, local banks, and under the guidance of the Reserve Bank of India. This strategic move seeks to foster economic ties and improve seamless digital transactions amongst the nations.

Understanding RuPay and UPI:

I. RuPay:

- Developed by the National Payments Corporation of India (NPCI), RuPay is a domestic card payment network that is widely used across India at ATMs, e-commerce websites, and POS devices.

- Supported by the Payment and Settlement Systems Act, 2007, it aids in creating a secure electronic payment and settlement system in India.

- RuPay cards cater to diverse societal segments with special variant cards.

- After Nepal, Bhutan, UAE, and Singapore, RuPay is now accessible in Africa through Mauritius.

II. UPI:

- UPI is a real-time digital payment system, developed by NPCI in 2016.

- Based on the IMPS infrastructure, it enables instant, seamless money transfers between any two parties' bank accounts.

- The countries accepting UPI payments include France, UAE, Mauritius, Sri Lanka, and others.

Benefits of UPI and RuPay in Mauritius and Sri Lanka:

  1. Seamless Transactions: The adoption of RuPay and UPI will simplify transactions, both domestically and internationally, for the users in Mauritius and Sri Lanka.
  2. Enhanced Financial Access: The acceptance of RuPay cards at ATMs and PoS terminals in Mauritius will advance the reach of digital payments. UPI connectivity in Sri Lanka enables QR code-based payments at merchant locations.
  3. Promotion of Financial Inclusion: The provision of RuPay cards and UPI services encourages diverse socio-economic groups to participate in the digital economy.
  4. Strengthened Economic Ties: The initiation of these services helps foster economic cooperation and collaboration and supports local businesses by promoting cashless transactions.
  5. Foster Innovation and Technological Advancement: The introduction of RuPay and UPI indicates a strong inclination towards digital innovation, showcasing Mauritius and Sri Lanka as progressing economies in the global digital landscape.

India's Digital Public Infrastructure (DPI):

- Known as the India Stack, India's DPI includes open and interoperable platforms that provide identity, payment, data sharing, and consent mechanisms for various digital applications.

- Key components include Aadhaar, DigiYatra, DigiLocker, and Account Aggregator.

- This infrastructure creates opportunities for innovation, economic transformation, and fosters inclusive growth in the digital space.