In accordance with the announcement made in the Statement on Development and Regulatory Policies dated February 8, 2023 on extending Unified Payments Interface (‘UPI’) for inbound travellers to India, the RBI, by a Circular dated February 10, 2023 allowed access to UPI for foreign national and non-resident Indians (‘NRIs’) visiting India. A summary of the key changes that are being implemented by virtue of this Circular are set out below:
i. prepaid payment instruments (‘PPIs’)in the form of wallets linked to UPI which can be used for merchant payments (‘P2M’) only Initially, 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 arrangements with entities authorised to deal in foreign exchange;
ii. The amount outstanding at any point of time in such PPIs will not exceed the limit applicable on full-KYC PPIs; and
iii. 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.
The Master Directions on Prepaid Payment Instruments dated August 27, 2021 has been updated to incorporate the above.