Planning overseas travel from Madhya Pradesh?:Check UPI charges, exchange rates, and refund rules before paying

If a person is traveling abroad from Madhya Pradesh to a UPI transaction services enabled foreign destination and pays a shopkeeper in the foreign country, this would work similar to paying at a local store in India. You open a supported UPI application on your mobile phone and scan the store’s QR code. The app displays the transaction amount in the local foreign currency along with the converted value in Indian rupees. Once you enter your UPI PIN, your linked Indian bank account is debited in rupees. The payment network handles the currency conversion and settles the payment to the foreign storekeeper in their local currency. How UPI International Payments Work? NPCI International Payments Limited (NIPL), the dedicated international subsidiary of the National Payments Corporation of India (NPCI) enables Indian travelers to make cross-border UPI payments in select countries. While domestic UPI is free, international transactions involve bank foreign exchange charges, daily limits, and specific activation steps. Active Countries for UPI Payments NIPL, the international arm of the National Payments Corporation of India NPCI, manages UPI expansion in overseas markets. Currently, travelers can use UPI at partner merchant locations in countries including Bhutan, the United Arab Emirates (UAE), Singapore, Nepal, Sri Lanka, Mauritius, France, and Qatar. In countries like Singapore and Nepal, bilateral linkages also support instant account-to-account money transfers. Charges on Domestic vs Foreign UPI In India, domestic UPI transactions between bank accounts remain free for everyday consumers. However, international UPI transactions carry additional costs levied by issuing banks. While the UPI system itself does not levy a platform fee, your Indian bank applies a foreign exchange markup fee. This markup typically ranges from 1.5% to 3.5% on the transaction value, depending on your bank. Applicable taxes and small bank processing charges may also apply to the converted amount. Apps Supported and Activation Process Travelers must use a UPI app that supports cross-border features. Applications such as BHIM, PhonePe, Google Pay, and Paytm support UPI International payments. Before making any payment overseas, users must manually turn on the ‘UPI International’ feature inside their chosen app. This is done by selecting the linked Indian bank account under payment settings and activating international payments using the UPI PIN. Depending on the bank, this activation stays valid for a fixed period, usually up to 90 days. Challenges and Refund Rules Overseas Travelers should check specific operational details before relying entirely on UPI abroad. Payments only work at merchant outlets displaying NIPL-partnered or UPI-compatible QR codes. If a merchant uses an unsupported local network, the transaction will not go through. Ashwin Bhatnagar who is co-founder of Xflow (fintech company building cross-border payment infrastructure for Indian businesses), says that use of UPI in foreign countries is currently limited. Just because the government has launched it in a specific country doesn’t mean that it is available in every shop in that country. It would only be available at certain places. NPCI sets a standard daily transaction cap of ₹1,00,000 for UPI, though individual banks may enforce lower daily limits. Refunds can also take longer for international transactions. If a transaction fails or a merchant cancels a sale after money is debited, the refund processes through international banking channels between foreign acquiring banks and Indian issuing banks. This settlement can take several working days to credit back to your Indian bank account. Expansion Plans for Global UPI NPCI International continues to work with central banks and financial regulators across Asia, Europe, and the Middle East to expand UPI acceptance. Future rollouts and pilot programs are planned for additional tourist destinations, expanding digital payment access for Indian travelers worldwide.