Prelims: Current events of national and international importance | Economy
Why in News?
NPCI International & ACLEDA Bank launch cross-border UPI payments in Cambodia via KHQR, Cambodia’s National QR Code, making Cambodia the 9th nation to adopt UPI services.
- Partnership – NPCI International (India) & ACLEDA Bank (Cambodia).
- NPCI International Payments Limited (NIPL) – It is the international arm of the NPCI.
- Platform – Bakong’s KHQR, Cambodia’s national QR code platform.
- It serves as a highly advanced and fully interoperable financial network enabling two‑way cross‑border transactions.
- Phase 1 – Prioritises incoming Indian travellers; Indian travellers can make QR payments at over 4.5 million Cambodian merchants (restaurants, retail, tourist spots).
- Phase 2 – It will become fully bi-directional; that is, Cambodian citizens visiting India will be able to scan millions of UPI QR codes for payments throughout India.
Benefits of UPI
- Enhanced Traveller Convenience – Eliminates the friction of physical currency exchange, carrying large amounts of cash, or navigating unfamiliar foreign exchange fees.
- Economic Boost for Local Merchants – Cambodian businesses gain immediate access to a massive, tech-savvy Indian visitor demographic, driving higher transaction volumes.
- Operational Efficiency – Local merchants will experience optimised cash management, lowered overhead costs associated with physical cash handling, and secure, real-time transaction settlements.
UPI Global Coverage – (8 countries) Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar and Sri Lanka.
Quick Fact
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UPI (Unified Payments Interface)
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- UPI – It is India’s mobile-based, real-time payment system that allows instant money transfers between bank accounts using a smartphone app, without needing to enter sensitive bank details each time.
- Purpose – To simplify digital payments by linking multiple bank accounts to one app.
- Developed by – NPCI in 2016, which has transformed digital payments ecosystems.
- Regulated by – Reserve Bank of India (RBI).
To know more about UPI, click here
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Reference
PIB | NPCI International Launch Cross-Border UPI Payments in Cambodia
