By Shruti Menon Seeboo & Samantha Seewoosurrun
India has successfully launched its Unified Payments Interface (UPI) services in Mauritius and Sri Lanka today, alongside the introduction of RuPay card services as part of this strategic initiative. The virtual ceremony was graced by Mauritian Prime Minister the Hon. Pravind Kumar Jugnauth, Sri Lanka’s President Ranil Wickremesinghe, and Indian Prime Minister Narendra Modi.
The UPI services, developed by the National Payments Corporation of India (NPCI), offer an instant real-time payment system designed to streamline inter-bank transactions through mobile phones. Meanwhile, RuPay stands as a globally recognized card payment network originating from India, with extensive acceptance at various points of sale, ATMs, and online platforms. UPI has significantly simplified life for millions in India, positioning the country as a leader in digital payments globally. Having surpassed 100 billion transactions in 2023, with nearly 400 million transactions daily, UPI solidifies its status as the preferred mode of digital payments.
The introduction of UPI settlement services will ease transactions for Indian nationals traveling to Sri Lanka and Mauritius, as well as Mauritian nationals traveling to India. Notably, the extension of RuPay card services in Mauritius enables Mauritian banks to issue cards based on the RuPay mechanism, promoting broader usage for settlements in both India and Mauritius. This move enhances financial integration between the two countries, broadening the customer base and facilitating smoother business operations.
Speaking from the Intercontinental Hotel in Mauritius, where industry and regulatory audiences were invited to witness the occasion, the Hon. Prime Minister Jugnauth remarked, “We aim to enhance access to digital services and public infrastructure while leveraging digital transformation opportunities sustainably and inclusively. Mauritius has undergone a digital transformation journey, with an efficient and cost-effective payment system serving as its highlight. The Bank of Mauritius has been at the forefront of developing payment systems to foster orderly and balanced economic development.”
Prime Minister Modi explained, “FinTech connectivity will not only strengthen cross border transactions, but also cross border connections. Unified payments interface, or UPI is now taking on a new mantle that of uniting partners with India, friends. Digital public infrastructure has brought about a revolutionary change in the smallest of our villages, even the smallest vendors making digital payments, and this is because it is not only convenient, but as well. Last year, a record 100 billion transactions took place through UPI. The total value was INR Rs 2 trillion or 8 trillion Sri Lankan rupees or over MUR Rs 1 trillion.”
India continuously strengthens connectivity with Sri Lanka and Mauritius. PM Modi went onto add, “I had extensive discussions with Prime Minister Jugnauth and President Wickremesinghe last year. You were special guests during the G20 Summit. I am confident that the UPI system will benefit both countries. Digital transformation will increase and there will be significant changes in local economy. I am confident that Indian tourists will give priority to UPI destinations. People of Indian origin living in Sri Lanka and Mauritius and students studying there. I am pleased that after launching UPI in Asia in Singapore and in the Gulf region with the UAE, and now with Mauritius, that will change the payments landscape within the African continent.”
For his part, President Wickremesinghe said, “I look at this as an important part of that developing project connectivity between our countries. We hope we carry on with that momentum, maintain the momentum, so that we can certainly identify other areas of quality. Sri Lanka also looks forward to having closer relations with Mauritius.”
Governor of the Bank of Mauritius: Today marks a significant milestone for Mauritius
Speaking in the margins of the event, the Governor of the Bank of Mauritius, Harvesh Kumar Seegolam said, “Today marks a significant milestone for Mauritius as it aligns with our strategy to enhance the overseas industrial operations for our citizens. Through today’s achievement, we have successfully established connectivity with India, one of our most crucial trading partners and a significant destination for Mauritian travellers. With this partnership, we aim to streamline the experiences of merchants visiting India and Indians visiting Mauritius, ensuring seamless and cost-effective payment processes. Unlike traditional systems with opaque commission structures, this new system offers transparency and efficiency in cross-border financial transactions. Our objective is to simplify the lives of individuals by leveraging digital solutions. Regarding exchange rates, a predefined mechanism has been established between the central banks of both countries to ensure fair consideration of exchange rates.”
Industry stakeholders share their perspectives on the UPI journey
In recent years, countries have been actively pursuing digital and fintech connectivity, paving the way for new collaboration opportunities and economic growth. India has emerged as one of Mauritius’ leading trading partners in the last five years. Notably, the implementation of the Metro Express light rail transit, supported by India, marks one of the latest major developments. Additionally, collaboration between the Reserve Bank of India and the Bank of Mauritius has facilitated these initiatives.
To recap, from an article published in The Economist, in February of last year, a link between UPI and PayNow was introduced by India and Singapore. Through virtual payment addresses, mobile numbers can now be used to transmit money from Singapore to India and from India to Singapore.
Various key players from the banking and fintech landscape who were present at the launch event praised its success.
Stephanie Ng Tseung-Yue, Head of Payments at MCB, commented: “This payment system will offer a distinct and efficient experience for Indians in Mauritius. With the ability to make payments through UPI or RuPay cards, it is expected to foster increased transactions and stronger ties between the two nations. As the Government has indicated, transactions will be directly conducted in the respective currencies. Furthermore, in the subsequent phases, we will explore solutions for seamless transactions and beyond. This initiative aims not only to strengthen ties between countries but also to enhance commercial exchanges, offering convenience and flexibility for users to make payments using their mobile apps.”
Kresh Goomany, CEO of Emtel, said: “blink by Emtel is very proud to be part of the UPI journey of Mauritius. blink is the Only PSP license holder to enable UPI service. We have been working on this project with BoM since 2023. Very soon, customers using blink will be able to scan the UPI codes in India to make payments, avoiding the hassle of carrying cash and converting into different currencies before availing Indian Rupees. They can make payments at over 50 million shops and others who use UPI QR codes. And the payment will be deducted in their bank accounts in Mauritius. BoM is enabling the flow and once all banks are live. We will be launching the service for all Mauritians to use blink in India. Similarly, Indians will be able to scan blink UPI codes in Mauritius to make payments from their India payment apps. blink is always in the forefront of enabling the digital payment ecosystem in Mauritius.”
President of the Indian Business Council, Dr Suresh Nanda stated, “When Indians visit Mauritius, they can easily use Indian Rupees, and similarly, when Mauritians travel to India, they can conveniently utilise Mauritian Rupees, with the conversion rate being fairly reasonable. The logical progression from this could be the introduction of rupee trade, which holds significant potential from a business standpoint. With rupee trade, transactions between Mauritius and India could involve payments in either Mauritian Rupees or Indian Rupees, depending on the circumstances. This approach eliminates the need for transactions to be routed through dollars, thereby increasing efficiency. While countries like Mauritius, which import extensively from India, may initially face a rupee shortage, this can be managed through government loans or bilateral agreements. Post-COVID, there has been a considerable shortage of dollars, particularly in regions like Africa. This shortage has hindered imports from other countries, such as India, impacting Indian companies exporting to Africa. By transitioning to rupee-based transactions, similar to the scenario in Nigeria where India exports various goods, including to countries like Nigeria, settlement in respective currencies can streamline trade and mitigate dependency on scarce dollar reserves.”
Deputy Chief Executive Officer of MauBank Ltd, Issa Mohamed Soormally said, “This marks a significant milestone for Africa, particularly for Mauritius, strategically positioned in the Indian Ocean. This initiative aims to consolidate currency routes between India, Sri Lanka, and Mauritius, setting a precedent for broader cooperation. It represents a partnership in monetary policy among Mauritius, India, and Sri Lanka, poised to revolutionise transactions and payments. This collaborative effort is expected to extend beyond monetary policies, paving the way for new opportunities not only for Mauritius but also for Africa as a whole.”
Diwakar Prasad Singh, Vice President of Bank of Baroda (Mauritius Operations), expressed enthusiasm for the government of India and Mauritius’ joint initiative, highlighting its potential to benefit the public on both sides. Singh emphasised the convenience for Indian tourists visiting Mauritius and Mauritian travelers heading to India, eliminating the need for cash by utilizing mobile banking apps. As the sponsor and settlement bank for this project, Bank of Baroda plays a pivotal role in issuing cards and facilitating transactions seamlessly between the two countries.
Managing Director & CEO of SBI Mauritius Ltd, Somnath Adhya said, “We’re starting here for the Mauritian citizens, enabling them to use this card domestically as well. Secondly, participating citizens gain access to a Standard Mode, allowing direct transactions from their accounts to entities in the Indian market. This eliminates the hassle of carrying cash and dealing with currency conversions between Mauritius and India. This initiative streamlines the payment system, enabling users to scan UPI codes for transactions, facilitating seamless cross-border transactions.”
TO RECAP:
What is Unified Payments Interface (UPI)
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience. With the above context in mind, NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. Banks have started to upload their UPI enabled Apps on Google Play store from 25th August, 2016 onwards. It is a regulated smartphone tool that allows for mobile payments to be made without debit or credit cards. The UPI has made paying for transactions easier and simpler, facilitating economic movement within India.
