Dubai: Indian nationals visiting the Emirates can now use their domestic bank accounts using the UPI services to make payments, but Indian NRIs living in the country still face challenges in registering and using the UPI platform. According to senior industry experts, the UPI services are available for Indian expats, but the process to register for the UPI in the UAE is overly complicated.
Indian NRIs living in the Emirates have to follow a complex KYC process, which involves providing documents that aren’t easily accessible. IBPC’s Secretary-General, Dr. Sahitya Chaturvedi, on the complex NRI UPI registration, said that there is a need for a simplified registration process, one that allows onboarding through alternative KYC measures, like an Emirates ID and a passport. He further added that the registration process must also allow users to connect their UAE-issued credit and debit cards and bank accounts for use in India.
UAE-Based NRIs Can Now Use UPI with Local Mobile Numbers
Indian bank account holders can transfer funds domestically using the UPI platform, and these services are available for NRIs in select countries, including the UAE. The Emirates-based remittance apps have notified their Indian customers about using their NRE/NRO bank accounts linked with UPI using a local mobile number. Previously, to access these services, Indian expats in the country could use mobile numbers registered in their home country with their bank accounts. Moreover, the local remittance apps have started supporting UPI transfers to India, making the process faster and more accessible.
Dr. Sahitya Chaturvedi said that for many middle-income and blue-collar Indian expats, reducing the compliance requirements and offering simpler tax guidelines can speed up fintech collaboration under the India-UAE CEPA framework. This is because the simpler NRI UPI registration process will encourage more Indian expats to join the Indian digital payment network. He further added that India’s domestic digital payments landscape has been significantly transformed by the UPI, but its global transaction feature is still limited, especially for NRIs.
Is UPI Becoming More Useful for Indian Tourists in the UAE?
It can be expected that UPI services will soon become more beneficial for Indian tourists visiting the Emirates, as the upcoming upgrades will enable them to make payments for shopping and services using their smartphones only. This upgrade can eliminate the need to carry cash or credit cards to make purchases and payments. Visitors can benefit from this advancement through the ongoing integration of the UPI with the Emirates digital payments network, according to the Indian Consul-General.
How Can Indian Visitors Use UPI to Pay in the UAE?
IBPC Dubai’s BFSI Convener & SBI’s CEO, Nilay Singh, said that UPI is quickly becoming a preferred mode of payment among Indian visitors in the UAE. He added that there is a major limitation, that Indian tourists can only use UPI at stores that have linked their billing systems with the UPI. If you are planning a visit to the Emirates or are currently on a trip, you should always ask the merchant if UPI is accepted before making a payment.
Despite the growing presence of the UPI in the UAE, most Indian visitors are still opting to pay for services using their credit cards. Barjeel Geojit Financial Services’ CEO, Krishnan Ramachandran, said it could be because users are more familiar with credit cards, they are globally accepted, and they offer benefits like reward points. Moreover, credit cards often provide the advantage of deferred payments and universal acceptance, helping users to perform transactions without instant deduction from their bank accounts.
UPI services need to offer similar rewards and benefits to stay competitive with credit card usage. Krishnan Ramachandran said that UPI is a more economical option for budget-conscious travelers, but the condition must be accepted at the stores. He further said the lack of familiarity, irregular acceptance across countries, and other limitations might make credit cards a more convenient choice for many tourists from India in the UAE.
What Alternative Payment Methods Can Indian Tourists Use?
Rupee payment got a boost after the LCS agreement was signed between India and the Emirates. Based on the new changes introduced by the RBI, the local businesses in the Emirates can now open an SNRR account, said Nilay Singh. However, it must be noted that using rupees for payments is still not very common and is mostly opted for when buying gold.
- International Debit Cards- Master and Visa Debit cards issued by Indian banks can be used to make purchases and take out cash at selected ATMs.
- Vishwa Yatra Card- These pre-loaded cards allow visitors to withdraw cash at select ATMs in multiple currencies.
- Credit Cards- These are the most widely used among Indian visitors in the Emirates due to their global acceptance and familiarity.
- Rupay Global Card- These can be used for international purchases or services at select merchants.
- Visitors can use digital wallets or payment links generated by merchants to pay for a specified amount.
