The Union Minister of Finance of India and the Finance Minister of Bhutan recently launched the Bharat Interface for Money – Unified Payments Interface (BHIM-UPI) in Bhutan. This significant step was taken by NPCI International Payments Ltd. (NIPL), the international arm of National Payment Corporation of India (NPCI), in collaboration with the Royal Monetary Authority (RMA) of Bhutan.
First Adopter of UPI Standards
Bhutan has become the first country to adopt UPI standards for its Quick Response (QR) code, marking a significant addition to its digital infrastructure. Further, it is the first country in India’s immediate neighbourhood to accept mobile-based payments through the BHIM App. Following Singapore, Bhutan is the second nation to have merchant locations accepting BHIM-UPI.
Bharat Interface for Money-Unified Payments Interface (BHIM-UPI)
The National Payment Corporation of India (NPCI) developed BHIM as a fast, secure, reliable cashless payment solution that operates via mobile phones. Built on the Unified Payment Interface (UPI) platform, BHIM facilitates e-payments directly through banks and is compatible with other UPI applications and bank accounts.
Unified Payments Interface (UPI)
UPI serves as an instant real-time payment system that allows users to transfer money across multiple bank accounts without disclosing their bank account details. It maintains a high level of privacy while ensuring seamless transactions.
Potential Advantages of BHIM-UPI
As a simple, safe, cost-effective mobile-based payment method, BHIM-UPI has become a prevalent form of digital payments. The payment infrastructures of both nations are now interconnected, offering considerable benefits to the large number of Indian tourists and businesspeople who visit Bhutan annually. This initiative will promote ease of living and traveling through cashless transactions. In 2020, UPI facilitated commerce worth USD 457 billion, equivalent to approximately 15% of India’s GDP.
Introduction to RuPay Card Scheme
RuPay, India’s first-of-its-kind domestic Debit and Credit Card payment network, stems from the words ‘Rupee’ and ‘Payment’. This highlights its identity as India’s original initiative for Debit and Credit Card payments. Besides India, the card is also valid for transactions in Singapore, Bhutan, UAE, Bahrain, and Saudi Arabia.
National Payments Corporation of India (NPCI)
Acting as an umbrella organization for operating retail payments and settlement systems in India, NPCI is an initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA). It was established under the provisions of the Payment and Settlement Systems Act, 2007 and Section 25 of Companies Act 1956. NPCI aims to provide infrastructure to the entire Indian banking system for physical and electronic payment and settlement systems.
