Cross Border UPI Payments Launched in Cambodia

Why in the news?

NPCI International Payments Limited and ACLEDA Bank Plc. launched cross border UPI payments in Cambodia through KHQR, Cambodia’s national QR code system.

Key Highlights

• Indian travellers can now use:
  • Unified Payments Interface (UPI)
    for QR based payments in Cambodia.
• Integration completed through: Bakong’s KHQR system.
• Launch ceremony held in Phnom Penh.

What is UPI?

The Unified Payments Interface (UPI):

• Is a real time digital payment system developed in India.
• Operated by: National Payments Corporation of India.
• Enables: Instant bank to bank transfers using mobile applications.

What is NIPL?

NPCI International Payments Limited (NIPL):

• International arm of NPCI.
• Responsible for:
  • Expanding UPI and RuPay globally.

About KHQR

• Cambodia’s national QR code standard.
• Operates through:
  • Bakong payment system.
• Managed by:
  • National Bank of Cambodia.

Features of the Partnership

Phase 1

• Indian travellers in Cambodia can:
  • Scan KHQR codes and make payments.
• Covers:
  • More than 4.5 million Cambodian merchants.

Future Phase

• Cambodian citizens visiting India will also be able to:
  • Use Cambodian banking apps to scan UPI QR codes in India.

Benefits of the Initiative

For Travellers

• Reduces need for:
  • Currency exchange
  • Carrying cash.
• Enables:
  • Seamless digital transactions.

For Merchants

• Access to Indian tourists.
• Faster and secure payments.
• Lower cash handling costs.

Importance of UPI Internationalisation

• Promotes: India’s digital public infrastructure globally.
• Strengthens: FinTech diplomacy.
• Supports: Cross-border digital payments and trade.

Countries Accepting UPI

• UPI is currently accepted in Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, and Cambodia.

Legal Status of NPCI

• Company Status: Registered as a Non-Profit Company under Section 8 of the Companies Act, 2013.
• Ownership: Owned and operated by a consortium of major banks in India.
• Regulatory Oversight: It is regulated and supervised by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007.

[2025] Consider the following countries:
I. United Arab Emirates
II. France
III. Germany
IV. Singapore
V. Bangladesh
How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

[A] Only two

[B] Only three

[C] Only four

[D] All the five