New Delhi: In a major boost to India’s homegrown digital payment platform Unified Payment Interface (UPI), which allows seamless financial transactions between two parties using mobile numbers, Bhutan has adopted BHIM-UPI based payment services. The service was jointly launched on Tuesday by Finance Minister Nirmala Sitharaman and her Bhutanese counterpart Lyonpo Namgay Tshering.
The launch is expected to benefit more than 200,000 tourists from India who travel to Bhutan each year.
“With today’s launch of BHIM-UPI in Bhutan, the payment infrastructures of the two countries are seamlessly connected and will benefit a large number of tourists and businessmen from India who travel to Bhutan each year,” said Finance Minister Nirmala Sitharaman.
Sitharaman also made a live transaction using BHIM-UPI to purchase an organic product from a Bhutanese OGOP outlet, which sells fresh farm produce made organically by local communities in Bhutan.
India and Bhutan have already enabled interoperability in the acceptance of Rupay cards in two phases. Under the agreement, Rupay cards issued in India will be accepted in Bhutan in the first phase and later Rupay cards issued in Bhutan will be accepted at Indian establishments.
Bhutan is the first country to adopt UPI standards for its QR deployment, and the first country in our immediate neighbourhood to accept mobile based payments through the BHIM App. Singapore is the first country that started accepting BHIM UPI at merchant locations.
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“The launch of BHIM-UPI in Bhutan is expected to enhance the ease of living and ease of travelling through cashless transactions at the touch of a button,” said the finance minister.
Bhutan will also become the only country to both issue and accept RuPay cards as well as accept BHIM UPI.
India’s UPI payment system
Unified Payments Interface (UPI) developed in India is an instant real-time payment system, allowing users to transfer money on a real-time basis, across multiple bank accounts without revealing details of one’s bank account to the other party.
This simple, cost-effective mobile-based payments system has become one of the most prominent forms of digital payments in the country over the years.
In 2020, UPI enabled commerce worth USD 457 Billion, which is equivalent to approximately 15% of India’s GDP.
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“Our vision has always been focused on taking our robust and popular payments solutions to global markets,” said Ritesh Shukla, CEO of NPCI International Payments Limited (NIPL).
Shukla said this strategic partnership with Bhutan in the area of digital payments will not only enhance the ease of transactions for Indian travellers to Bhutan but will also add value to the lives of customers in Bhutan.
The service has been launched in partnership with Bhutan’s Central Bank - the Royal Monetary Authority (RMA) of Bhutan.
