How tourists and NRIs can use UPI without an Indian bank account

Thanks to UPI One World, foreign nationals and non-resident Indians can now make hassle-free payments across India seamlessly.

Whether you’re a first-time overseas visitor, an NRI returning to reconnect with home, a health tourist, a student or even if you’re catching up with long-distance friends, UPI One World simplifies your payment needs, allowing you to pay for food, transport, accommodation and shopping with just a few taps on your smartphone, without the need to open a local bank account.

How it works

UPI One World is designed specifically for foreign visitors and NRIs. It is powered by India’s Unified Payments Interface (UPI), a facility that enables instant online transfer of funds between bank accounts. Users can load Indian rupees into a prepaid wallet, which can then be used to pay merchants and vendors via widely used UPI QR codes.

This feature eliminates the need to carry large amounts of cash or rely on forex cards.

“Foreign tourists often face hassles with forex cards, particularly in tier-2 and tier-3 cities, where acceptance is limited,” said Ayan Agarwal, CEO of Transcorp. “UPI One World bridges this gap, allowing visitors to transact digitally without relying on cash or forex cards.”

Onboarding

Getting started with UPI One World is straightforward. Users can download one of the PPI (prepaid payment instrument) wallet apps such as CheQ by Transcorp, First Rupee by IDFC First, Mony or NamasPay and sign up using their foreign mobile numbers. To activate the service, users need to complete a physical Know Your Customer (KYC) process at designated counters at or outside airports, providing their passport and valid visa for verification.

In the case of First Rupee by IDFC First, a user can either reach out to designated counters at the airport for the KYC process or an IDFC First bank branch. In the case of CheQ, the user has to reach one of its branches for KYC.

“We have 28 designated branches for physical verification across the top metro cities in India,” said Agarwal of Transcorp. “We can also facilitate this service in other locations and have done it before. Typically, a representative will visit the customer’s place for onboarding.”

The process, including physical KYC, takes less than 15 minutes, he said.

“Once completed, users can start making payments immediately,” he said.

Travellers can then load rupees into the wallet using their debit or credit cards or through forex counters.

NRIs with Indian bank accounts can link their NRE/NRO accounts to UPI and seamlessly transact using UPI apps. This allows them to enjoy the convenience of digital payments while in India. NRIs with Indian bank accounts can also use this feature to transact while in India.

Benefits

UPI One World offers many advantages for travelers. It eliminates the risks associated with carrying cash and simplifies the payment process, allowing users to focus on their travel experience rather than financial logistics. Payments are quick, secure, and widely accepted, even in smaller towns and local markets.

Whether you’re shopping in the metro cities or local markets, dining, or booking transport, this feature makes payments easier while you travel. Additionally, users can track their spending through the transaction history feature in the app.

At the time of departure, any unspent balance in the wallet can be refunded to the original source of funds such as a credit card or international bank account.

“There are no transaction charges for the users when using the PPI wallet,” Agarwal said. “Even refunds for any unutilised balance are processed without fees, on a real-time basis, ensuring a seamless experience for travelers.”

Platform charges

The UPI One World platform is free to use, without any transaction charges for making payments to merchants. However, standard currency conversion charges apply when loading the wallet with foreign currency or when transferring the remaining balance back to the original source of funds.

Additionally, users may incur applicable payment gateway fees if they choose to reload the wallet using a debit or credit card.

“While the platform itself has no transaction fees, the applicable charges for currency conversion or card-based loading are as per market standards,” Agarwal explained.

Limitations

While UPI One World is designed exclusively for merchant payments, there are certain limitations. Users cannot send money to or receive money from resident Indians or withdraw cash from the wallet. They can only make payments to businesses and shops.

The maximum balance that can be stored in the wallet is ₹2 lakh, but users can reload it as many times as needed.

“The PPI wallet is meant for merchant payments only,” Agarwal confirmed. “It cannot be used for peer-to-peer transfers or cash withdrawals, ensuring that it remains a secure and focused solution for digital transactions.”

User adoption

UPI One World was developed jointly by the NPCI, IDFC First Bank, and Transcorp, under the guidance of the RBI and rolled out in July 2024.

“We are seeing rapid adoption of this feature, with over 4,000 foreign nationals and NRIs onboarded so far, of which 95% are foreign nationals and the rest are NRIs,” Agarwal said. “Transaction volumes are growing 20-25% month-on-month, and we are constantly working to enhance the user experience, including exploring remote onboarding options.”

Efforts are under way to make the onboarding process for UPI One World fully online.

“One key area we are focused on is developing a digital or remote onboarding process so that foreign nationals can sign up without the need for physical KYC. We are in discussions with the Reserve Bank of India to enable this capability,” Agarwal said.