Newly appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced an ambitious plan to expand the reach of Unified Payments Interface (UPI) internationally by linking it with fast payment systems of other countries. This initiative aims to enhance cross-border payments, reduce costs, and improve transaction speed.
Key Announcements from Malhotra’s Speech
1. UPI’s Global Expansion & Cross-Border Payments
The RBI will collaborate with other nations to integrate UPI with their fast payment systems, making cross-border transactions more efficient.
Beyond UPI, the RBI will explore linking other payment systems to improve cross-border transactions.
Project Nexus, led by the Bank for International Settlements (BIS), will enable real-time cross-border retail payments. India, along with Malaysia, Philippines, Singapore, and Thailand, will be among the founding members.
2. India’s Digital Payments Growth & Financial Inclusion
India leads in real-time transactions, with 48.5% of global digital payments occurring through UPI.
In January 2025, over 20 billion digital transactions worth ₹250 trillion were processed.
Despite this growth, 40% of India’s adult population still does not use digital payments, mainly due to lack of awareness.
3. Digital Payments Awareness & Financial Literacy
The 5th Digital Payments Awareness Week (DPAW) 2025 (March 10-16) is themed “India Pays Digitally”, aimed at deepening digital payment adoption.
As part of Mission Har Payment Digital, the RBI will enhance awareness and infrastructure for digital payments across India.
The eBAAT (Electronic Banking Awareness and Training) initiative, running since 2012, will be reviewed and expanded to reach more people in 2025.
4. Balancing Innovation & Security in Payments
The RBI will continue soft-touch regulations to encourage innovation in digital payments while ensuring security.
The goal is to promote fast, secure, and resilient payment systems while addressing risks in the FinTech sector.
Future Outlook
The RBI is expected to cut interest rates further in April, following its first rate reduction in five years last month.
India’s GDP growth is projected to reach 6.7% for FY 2025, despite global uncertainties, including the US-China trade war and rising tariffs.
Malhotra emphasized that digital payments are the foundation of economic growth and financial empowerment. The RBI’s continued efforts will foster innovation, improve global connectivity, and enhance financial inclusion in India.
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