India rolls out the UPI-UPU project on the cross-border payments

India has gone a big mile in redefining international remittance through the initiation of the UPI-UPU Integration Project at the 28th Universal Postal Congress in Dubai. The project was announced by Union Minister of Communications Jyotiraditya M. Scindia and creates an interface between the Unified Payments Interface (UPI) of India and the Interconnection Platform (UPU-IP) of the Universal Postal Union (UPU), establishing a rapid, secure, and low-cost method of making cross-border payments.

Background and Development

It is a project that is a partnership between the Department of Posts of India, NPCI International Payments Ltd. (NIPL), and the UPU. It links the real-time digital payment ecosystem in India with the postal payment network of UPU with 192 member countries. The initiative will save millions of families around the world that depend on migrant worker remittances by reducing the money transfer costs and time delays.

How the Integration Works

UPI is the digital payment revolution in India, and UPU-IP connects the global postal services in terms of financial transactions. The project allows making international transfers without using expensive intermediaries by combining the two, which leads to an easy settlement process. The integration will use the postal infrastructure and digital payment infrastructure in India to make global financial inclusion a reality.

Significance

Migration barriers have in the past been high remittance charges and slow processing of remittance. The UPI-UPU Project directly responds to these challenges by providing a low-cost and almost instant option to the traditional banking corridors. It supports the UN Sustainable Development Goal of minimizing remittance expenses to less than 3 percent and improves access by underserved communities.

India and its devotion and partaking in the world.

India has committed 10 million dollars to enhance global postal services by placing emphasis on digital payments, e-commerce, and capacity building. It is also going to organize regional workshops to make sure that there is worldwide involvement. India is a candidate for the UPU Council of Administration and Postal Operations Council, which strengthens the position of a country in inclusive digital finance.

Impact on Remittances

UPI transacted 185 billion transactions in 2024-25 with a transaction value of 2.83 trillion, which constituted almost half of global digital payments. This will enhance the ease of sending money abroad just like in the domestic market since the ability is extended to international remittances, which is advantageous to the Indian diaspora and other communities. New revenue streams are also accrued by the postal administrations, making them serve the community better.

Global Collaboration

The UPI-UPU initiative brings out the Digital Public Infrastructure model of India, which is based on Aadhaar, Jan Dhan Yojana, and India Post Payments Bank. It integrates payments, identity, and logistics to establish the foundation of global commerce that will be interoperable and demonstrates that India is ahead in developing scale-based and inclusive solutions to financial problems.