During a recent address, Prime Minister Narendra Modi emphasized the importance of embracing India's Unified Payments Interface (UPI) among the BRICS nations, advocating for increased financial integration among member countries. Highlighting the success of UPI in the United Arab Emirates (UAE), he pointed out that the UAE has successfully adopted this innovative payment system, while Mauritius has also expressed interest in the technology.

Launched in Dubai on March 28, 2024, the UPI system has been facilitated by a partnership between Mashreq Bank and NPCI International Payments Limited (NIPL). This collaboration aims to streamline payment processes for Indian travellers in the UAE, incorporating plans for inward remittance services through PhonePe, which will simplify money transfers by leveraging the UPI infrastructure.

In a noteworthy development, the President of the Maldives, Mr. Mohamed Muizzu, announced on October 21 the decision to introduce UPI in the island nation, following a recommendation from his Cabinet. This initiative reflects India’s commitment to sharing its expertise in digital and financial services with its neighboring countries. The Maldivian government believes that the adoption of UPI will not only enhance financial inclusion but also improve transaction efficiency and strengthen the country's digital infrastructure.

To facilitate the implementation of UPI in the Maldives, a consortium involving banks, telecom companies, state-owned enterprises, and fintech firms will be established. This collaborative approach is expected to accelerate the deployment of UPI and make it accessible to a broader audience in the island nation.

A study conducted by an economist from the Reserve Bank of India revealed a significant increase in digital payments in India, which have more than doubled their share from 14-19% in March 2021 to 40-48% in March 2024. Despite this growth, cash transactions still account for a substantial 60% of all transactions in the country, indicating that there is still a long way to go in the journey towards a cashless economy.

The call for BRICS nations to adopt UPI is a significant step towards global financial integration and modernization. It showcases India's leadership in digital payment technologies and its commitment to fostering stronger financial ties within the BRICS community.

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As the world moves towards a more digital economy, India's UPI stands as a testament to the potential of technology in transforming financial systems and enhancing economic collaboration among nations.