Modi calls for global UPI expansion to cut diaspora remittance costs

Speaking at the inauguration of the 7th Global Fintech Fest, Modi emphasized the need to build on a decade of UPI's success as India's dominant real-time payments platform and focus on international expansion. The PM highlighted that UPI is already operational in 11 countries and has established connectivity with Singapore's local payment systems, demonstrating its growing cross-border capabilities.

Modi identified countries with large Indian populations, substantial trade relationships with India, or willingness to partner on payment integration as priority markets for UPI expansion. The strategy aims to address the substantial costs associated with remittances sent by Indian workers abroad, who constitute a major source of foreign inflows to the country.

The initiative reflects India's broader ambitions to position UPI as a competitive cross-border payments solution while reducing transaction costs for the estimated millions of Indian workers employed globally. By connecting UPI with local payment systems in partner nations, the fintech ecosystem could streamline money transfers and lower remittance fees that currently consume a significant portion of funds sent home.

India's fintech sector has been tasked with accelerating integration efforts with international payment systems, representing a shift from UPI's purely domestic focus toward becoming a regional and potentially global payments standard.