India and Indonesia have agreed to link their digital payment systems to support faster cross-border transactions.
Under the plan, India’s instant payments platform, the Unified Payments Interface (UPI), will be integrated with Indonesia’s payment system.
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The move was announced by Indian Prime Minister Narendra Modi during his visit to Jakarta.
The integration is expected to help users in both countries make digital payments more seamlessly, according to an ANI report. It is also expected to reduce dependence on cash and make payments easier for travellers and businesses.
A joint statement said: “The two leaders welcomed the progress towards the implementation of the Cross-Border QR Payment Linkage between India and Indonesia as agreed between the Reserve Bank of India and Bank Indonesia.
“This initiative marks an important milestone in strengthening bilateral payment connectivity between Indonesia and India.”
The statement added the linkage is expected to particularly benefit MSMEs, the tourism sector and students.
The announcement adds to India’s efforts to expand UPI internationally. UPI is currently operational in markets including Singapore, the UAE, Bhutan, Nepal, Sri Lanka, France, Mauritius, Qatar and Cambodia.
Recently, National Payments Corporation of India (NPCI), which oversees retail payments and settlement systems in India, partnered with HSBC India and JP Morgan Payments. The collaboration was aimed at real-time currency conversion and settlement for international payments made through UPI.
Meanwhile, PM Modi and Indonesian President Prabowo Subianto also agreed to advance cooperation in other sectors.
