UPSC Prelims 2025Question 69Economy

Consider the following countries:
I. United Arab Emirates
II. France
III. Germany
IV. Singapore
V. Bangladesh
How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

Options

(a)Only two
(b)Only three
(c)Only four
(d)All the five

Correct answer: b

Decision rule

Count only live merchant acceptance: countries at MoU or pilot stage, however often reported, do not count in UPI-internationalisation questions.

Explanation

Correct Answer:

(b) Only three

Explanation of the Correct Answer

As per National Payments Corporation of India (NPCI) International’s UPI Global Acceptance, Indian UPI users can currently make in-person merchant payments abroad in the following countries:

United Arab Emirates
France
Singapore

Germany and Bangladesh are not yet part of the UPI Global Acceptance network.

Why Other Options Are Incorrect

Only two – Incorrect: More than two countries—three, in fact—accept UPI for international merchant payments.
Only three – Correct
Only four – Incorrect: Germany is often discussed but not yet officially included in the UPI roll-out.
All five – Incorrect: Bangladesh and Germany are not currently supported.

Relevant Supplementary Information

Table: UPI International Merchant Payment Acceptance

Country	UPI Merchant Payments Available?	Notes
United Arab Emirates (UAE)	Yes	Bolstered by partnerships (Mashreq, Network International)
France	Yes	Accepted at tourist/merchant outlets like Eiffel Tower
Singapore	Yes	Linked with PayNow; in-store acceptance
Germany	No	Under discussion, not yet implemented
Bangladesh	No	No rollout or pilot yet

Related Concepts

NPCI International Payments Ltd (NIPL) drives UPI adoption globally under UPI Global Acceptance.
In addition to merchant payments, UPI is expanding through:
- Cross-border remittances (e.g., Singapore, Malaysia)
- Inward remittances to India
- Priories markets: Sri Lanka, Bhutan, Nepal, Mauritius, Maldives, etc.
Countries like Germany and Bangladesh are part of ongoing discussions, but live merchant acceptance is available only in three of the listed countries.

Current Trends and Developments (2024–25)

Initiative	Details
UPI Global Expansion	Merchant payments and remittances now accepted in Singapore, UAE, France, etc.
UPI Credit Line	Allows linking of pre-sanctioned credit lines with UPI
Tokenization of Card Payments	Enhances security by replacing card numbers with tokens
Digital Rupee (e₹)	Pilot programs ongoing for both retail and wholesale use
Interlinking with Global Payment Systems	UPI-PayNow (Singapore), UPI-TFPS (UAE), RuPay card acceptance abroad

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Consider the following countries:I. United Arab EmiratesII. FranceIII. GermanyIV. SingaporeV. BangladeshHow many countries amongst the above are there other than India where international merchant payments are accepted under UPI?