Can UPI transactions be taxed?

Yes, certain UPI transactions are subject to taxation. For instance, if you receive paybacks exceeding ₹50,000 in a financial year, it is taxable under Section 56(2)(X) of the Income Tax Act, 1961.

Can I use UPI for international transactions?

UPI does not support fund transfers from India to foreign countries. However, users in India can receive money from international sources via UPI.

Which UPI app supports international transactions?

“Wise” is one such UPI-enabled application that facilitates international money transfers. It allows users to sign up for free and transfer funds globally without hidden charges or markups, using real exchange rates.

A UPI ID, also known as a Virtual Payment Address (VPA), is a unique identifier used for digital payments via UPI. It can be created through any UPI-enabled mobile app by linking it to your bank account.

What is the maximum limit for UPI transactions in IPO applications?

For Initial Public Offerings (IPOs), UPI transactions are capped at ₹2 lakh per application.

Can UPI function without an internet connection?

Yes, UPI payments can be made offline via the *99# USSD service introduced by NPCI. This service allows users to conduct transactions without an internet connection across multiple banks in India.

How many UPI transactions can be made in a day?

The number of daily UPI transactions depends on bank policies. However, platforms like Paytm UPI impose a limit of five transactions per hour and a maximum of 20 transactions per day.

Is UPI prone to hacking?

While UPI has simplified digital payments, it has also attracted fraudulent activities. Scammers have devised multiple ways to trick users and compromise their UPI accounts, making security awareness crucial.

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UPI for NRIs

The landscape of international finance is rapidly evolving, and with it, the needs of Non-Resident Indians (NRIs) who maintain strong financial ties with their homeland. Recognizing this, the introduction of the Unified Payments Interface (UPI) for NRIs marks a significant leap forward in digital financial inclusion. By enabling NRIs to directly access India's real-time payment system, UPI for NRIs bridges the gap between overseas financial management and domestic transactions, offering convenience and efficiency.

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What is UPI for NRIs?

Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI). It facilitates instant money transfers between two bank accounts on a mobile platform. UPI allows users to link multiple bank accounts to a single mobile application, enabling seamless and secure transactions. It simplifies digital payments by using Virtual Payment Addresses (VPAs) or mobile numbers, eliminating the need to share sensitive bank details.
UPI for NRIs extends the convenience of India's Unified Payments Interface to Non-Resident Indians, enabling them to conduct seamless digital transactions. It allows NRIs to link their Non-Resident External (NRE) or Non-Resident Ordinary bank accounts to UPI-enabled applications, facilitating instant money transfers and payments within India. This development is significant as it streamlines remittances, bill payments, and other financial activities for NRIs.

Features of UPI for NRIs

Below are the features of UPI for NRIs:

Instant Real-Time Payments: Money transfers occur instantly, 24/7, including holidays.
Mobile-Based Transactions: All transactions are conducted via a mobile application.
Multiple Bank Account Linking: Users can link multiple bank accounts to a single UPI app.
Virtual Payment Address (VPA): Transactions can be initiated using a VPA, enhancing privacy.
QR Code Payments: Facilitates quick and contactless payments by scanning QR codes.
Request Money Feature: Users can request money from other UPI users.
Secure Transactions: Multi-factor authentication ensures secure transactions.

Partner	Handle Name
BHIM	@upi
PhonePe	@ybl @ibl @axl
Google Pay	@okxyzbank (xyz being the bank through which you have linked)

Benefits of Introducing UPI for NRIs

Below are the benefits of introducing UPI for NRIs:

Expanded Accessibility: It benefits families residing abroad, international students, and local businesses in India.
Increased Transaction Volume: Shifts UPI towards more peer-to-merchant transactions, enhancing its utility for retail and business purposes.
Simplified Account Linking: NRIs can easily access UPI by linking their NRE accounts /NRO accounts to their international SIM cards.
Cost-Effectiveness:
- No additional charges are imposed on account holders for UPI transactions.
- Reduced transaction costs compared to other international money transfer methods.
Streamlined Transactions: Eliminates the need for lengthy recipient bank account details, using UPI IDs, QR codes, or phone numbers instead, reducing the risk of errors.
Enhanced Security: Offers advanced security measures, including two-factor authentication, ensuring secure financial transactions.

How to Enable UPI on Your Registered Indian or International Mobile Number?

Enabling UPI, especially for NRIs with international mobile numbers, involves a few key steps.
Below are a few general steps to enable UPI:

Step 1: Ensure Account Eligibility:

Confirm that your NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account is active.
Verify with your bank that they support UPI transactions for NRI accounts and, specifically, for international mobile numbers.

Step 2: Download a UPI-Enabled App:

Choose a reputable UPI app (like BHIM, Google Pay, PhonePe, or your bank's mobile banking app, such as ICICI Bank's iMobile Pay).
Download and install the app from your device's app store.

Step 3: Mobile Number Verification:

Enter your registered mobile number (Indian or international) into the app.
The app will typically verify your number via SMS. Ensure you have an active international SMS pack if using an international number.

Step 4: Link Your Bank Account:

Select your bank from the list of supported banks within the app.
Link your NRE or NRO account to the UPI app. This often involves verifying your bank details.

Step 5: Create a UPI ID:

The app will guide you through creating a unique UPI ID.

Step 6: Set a UPI PIN:

Create a secure 4- or 6-digit UPI PIN. This PIN will be required for authorizing transactions.
This step often requires using your debit card details and an OTP.

Step 7: Complete KYC (Know Your Customer) Requirements:

Depending on the bank and app, you may need to complete KYC verification.

Key Considerations for NRIs:

International Mobile Numbers:
- Some banks, like ICICI Bank, have enabled UPI for NRIs using international mobile numbers from specific countries. Always confirm with your bank.
- It is vital to know that NPCI has allowed this service from selected geographies.
Bank-Specific Processes:
- The exact steps may vary slightly depending on your bank and the UPI app you choose.
- It's crucial to refer to your bank's specific guidelines and instructions.
Security:
- Be cautious and only download UPI apps from official app stores.
- Never share your UPI PIN or other sensitive information with anyone.

By following these steps and staying informed about your bank's specific requirements, you can successfully enable UPI on your registered mobile number.

Countries Supporting the UPI Facility

Countries that will and are supporting the UPI facility:

United Arab Emirates
Oman
United Kingdom
France
USA
South Africa
Netherlands
Saudi Arabia
New Zealand
Singapore
Malaysia
Hong Kong
Canada
Australia
Qatar
Germany

Limit on the UPI for NRIs

The National Payments Corporation of India (NPCI) sets general guidelines for UPI transactions. Typically, the standard UPI transaction limit is ₹1 lakh or 20 transactions per day. However, there are exceptions for certain types of transactions.

Conclusion

The implementation of UPI for NRIs represents a transformative step in modernizing cross-border financial transactions. By simplifying remittances, enhancing payment convenience, and fostering greater financial inclusion, this initiative directly addresses the evolving needs of the global Indian diaspora. As UPI's international reach continues to expand, it promises to further strengthen the financial ties between NRIs and their homeland, contributing to a more interconnected and digitally empowered global economy.

FAQs

Can UPI transactions be taxed?

Yes, certain UPI transactions are subject to taxation. For instance, if you receive paybacks exceeding ₹50,000 in a financial year, it is taxable under Section 56(2)(X) of the Income Tax Act, 1961.
Can I use UPI for international transactions?

UPI does not support fund transfers from India to foreign countries. However, users in India can receive money from international sources via UPI.
Which UPI app supports international transactions?

“Wise” is one such UPI-enabled application that facilitates international money transfers. It allows users to sign up for free and transfer funds globally without hidden charges or markups, using real exchange rates.
What is a UPI ID?

A UPI ID, also known as a Virtual Payment Address (VPA), is a unique identifier used for digital payments via UPI. It can be created through any UPI-enabled mobile app by linking it to your bank account.
What is the maximum limit for UPI transactions in IPO applications?

For Initial Public Offerings (IPOs), UPI transactions are capped at ₹2 lakh per application.
Can UPI function without an internet connection?

Yes, UPI payments can be made offline via the *99# USSD service introduced by NPCI. This service allows users to conduct transactions without an internet connection across multiple banks in India.
How many UPI transactions can be made in a day?

The number of daily UPI transactions depends on bank policies. However, platforms like Paytm UPI impose a limit of five transactions per hour and a maximum of 20 transactions per day.
Is UPI prone to hacking?

While UPI has simplified digital payments, it has also attracted fraudulent activities. Scammers have devised multiple ways to trick users and compromise their UPI accounts, making security awareness crucial.

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#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
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