Context:
The Prime Minister of India, alongside the President of Sri Lanka, Mr. Ranil Wickremesinghe, and the Prime Minister of Mauritius, Mr. Pravind Jugnauth, jointly inaugurated the launch of Unified Payment Interface (UPI) services in Sri Lanka and Mauritius, along with the introduction of RuPay card services in Mauritius. This collaborative effort signifies a significant step towards enhancing digital payment systems and financial connectivity between the three nations, fostering economic cooperation and showcasing a commitment to digital innovation.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- RuPay
- UPI
- Benefits of RuPay and UPI for Users in Mauritius and Sri Lanka
RuPay:
- Payment System by NPCI: RuPay is a payment system and financial services product developed by the National Payments Corporation of India (NPCI).
- Domestic Card Network: It functions as a domestic card payment network, usable at ATMs, POS devices, and e-commerce websites across India.
- Empowered by RBI and IBA: The provision under the Payment and Settlement Systems Act, 2007, empowered the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) to establish a secure electronic payment and settlement system in India.
- Card Variants: RuPay offers various card variants, including Government scheme cards, RuPay Classic, Platinum, and Select, catering to different segments of society.
- Global Expansion: Besides being available in Asian countries like Nepal, Bhutan, Singapore, and UAE, RuPay has expanded to Africa through Mauritius, becoming the first non-Asian country to issue RuPay cards.
- MauCAS in Mauritius: The use of RuPay technology in Mauritius enables local issuance through the Mauritius Central Automated Switch (MauCAS) card network, a digital hub operated by the Bank of Mauritius for routing payments.
UPI:
- Digital Payment System: Unified Payments Interface (UPI) is a digital and real-time payment system developed by NPCI in 2016.
- Built Over IMPS: UPI is built over the Immediate Payment Service (IMPS) infrastructure, allowing instant money transfers between any two parties’ bank accounts.
- Integration of Banking Features: UPI integrates various banking features, enabling seamless fund routing and merchant payments through a single mobile application.
- Transaction Volume: In 2023, UPI recorded more than 100 billion transactions, amounting to Rs 2 lakh crores.
- International Acceptance: UPI payments are accepted in several countries, including France, UAE, Mauritius, Sri Lanka, Singapore, Bhutan, and Nepal, highlighting its global reach and acceptance.
Benefits of RuPay and UPI for Users in Mauritius and Sri Lanka
Convenient Transactions:
- Users in Mauritius and Sri Lanka will experience convenience in making transactions, both domestically and internationally, through the adoption of RuPay and UPI.
Seamless Cross-Border Transactions:
- RuPay cards and UPI connectivity facilitate seamless transactions for individuals traveling between India, Mauritius, and Sri Lanka, eliminating the need for currency exchange and reducing transactional complexities.
Expanded Accessibility:
- RuPay cards will be accepted at ATMs and PoS terminals in Mauritius, expanding the accessibility of digital payments for users in the region.
QR Code Payments:
- UPI connectivity in Sri Lanka enables users to make QR code-based payments at merchant locations, providing a convenient alternative to traditional payment methods.
Financial Inclusion:
- The availability of RuPay cards and UPI services empowers individuals from diverse socio-economic backgrounds to participate in the digital economy, fostering financial inclusion.
Cost-Effective Transactions:
- UPI transactions offer a cost-effective solution, reducing expenses associated with traditional banking services and facilitating affordable financial transactions.
Trade and Tourism Growth:
- Seamless payment solutions contribute to the growth of trade and tourism between India, Mauritius, and Sri Lanka, fostering economic cooperation and collaboration.
Support for Local Businesses:
- Increased digital transactions support local businesses by promoting cashless transactions, enhancing transparency, and reducing reliance on cash-based transactions.
Strengthened Economic Ties:
- The launch of UPI and RuPay services strengthens economic and strategic ties between the three countries, aligning with India’s “neighbourhood first” policy and “SAGAR” (Security and Growth for All in the Region) vision.
Digital Innovation and Progress:
- The introduction of RuPay and UPI reflects a commitment to embracing digital innovation, positioning Mauritius and Sri Lanka as progressive economies in the global digital landscape.
Access to Advanced Financial Solutions:
- By leveraging advanced payment technologies, users gain access to innovative financial solutions that empower them to manage their finances more efficiently and securely.
-Source: Indian Express
