IMF claims, 'India became the fastest paying country in the world through UPI'

India's UPI has now been recognized by the International Monetary Fund (IMF). In a report, it stated that India now processes payments faster than any other country because of the rapid growth of UPI. This trend is reducing the use of other payment methods, including debit and credit cards.

In a report released on Thursday, the IMF noted that the Unified Payments Interface (UPI) has grown quickly since its launch in 2016. Over 18 billion transactions are now conducted monthly through UPI, making it the leading electronic retail payment system in India. Interoperable payment systems like UPI serve as alternatives to closed-loop systems and can help promote digital payments. These systems enable seamless transactions between users of different payment providers. The report also highlights that overall digital payments are increasing relative to cash usage. The National Payments Corporation of India (NPCI) has added new features to UPI to improve user experience. These include cross-border payments, integration of loan and insurance services, among other features. A recent example of UPI's international reach was during Prime Minister Narendra Modi's visit to Trinidad and Tobago on July 3-4. 

Earlier, the Ministry of External Affairs mentioned that both countries expressed strong interest in boosting cooperation in the digital sector. Trinidad and Tobago has become the first Caribbean nation to adopt UPI. Both countries agreed to strengthen their partnership in digital initiatives and collaborate on implementing India Stack solutions like DigiLocker, e-Sign, and the Government e-Marketplace (GEM). 

Notably, in January, the NPCI permitted immigrants from ten countries, including the US, Canada, and the United Arab Emirates, to transfer money digitally using UPI from NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts. NPCI stated in a circular that it is receiving requests to enable immigrants to use international mobile numbers for UPI transactions.