In the era of digital payments, the Unified Payments Interface (UPI) has revolutionized how we handle transactions within India. But did you know that you can also use UPI for international transactions? Making international transactions can often be a tedious and complicated process.
However, with the rise of digital payments, it has become much easier to make transactions across borders seamlessly. In this comprehensive guide, we’ll walk you through the process step by step so you can seamlessly manage your international payments with UPI.
Understanding UPI for International Transactions
Before we delve into the specifics, it’s important to understand that UPI, designed primarily for domestic use, isn’t the go-to option for international transactions. However, you can still leverage it with a few workarounds.
- Set up your UPI account for international transactions.
Firstly, you must set up a UPI account linked to your bank account. While setting up your account, make sure that you register for international transactions. You can do this through your bank or directly through the UPI app. After this, you will receive a unique International Bank Account Number (IBAN) and Bank Identifier Code (BIC), your identification for international transactions.
- Check the exchange rate for the transaction.
Before making any international transaction, it is essential to check the exchange rate. Exchange rates vary throughout the day, and you want to ensure you make the transaction at the best possible rate. UPI offers real-time exchange rates, making determining the appropriate exchange rate easier before completing the transaction.
- Choose the recipient’s bank and enter their details.
After checking the exchange rate, you must determine the recipient’s bank. UPI supports international transfers to over 200 countries and has over 500 banks on its network. Once you have identified the recipient’s bank, you can enter their details, including their IBAN and BIC, to initiate the transaction.
- Verify the transaction
Once you have entered all the details, double-check to ensure all the information is accurate. It is essential to remember that international transactions cannot be reversed, so you must be cautious while making the transfer. After verifying the transaction, you will receive a confirmation for the same.
- Wait for the transaction to be completed.
International transactions can take up to a few days to be completed, so patience is essential. UPI offers real-time tracking, allowing you to monitor the transaction’s status at every step. Once the transaction has been completed, you will receive a notification on your UPI app.
Steps To Use UPI for International Transactions
1. Linking a Multi-Currency Forex Card to Your UPI App
- Select a Multi-Currency Forex Card: First, you must obtain a multi-currency Forex card from a bank or financial institution. Ensure it supports UPI integration.
- Link the Card to Your UPI App: Open your UPI payment app (e.g., Google Pay, PhonePe) and navigate to the settings. Look for the “Add Payment Method” or “Link Bank Account” option.
- Enter Card Details: Input the Forex card’s details, including the card number, expiration date, CVV, and other required information.
- Verify and Confirm: Follow the app’s instructions to verify the linked card. You might receive an OTP on your registered mobile number for authentication.
2. Fund Your Forex Card
- Load Money: If supported, transfer funds to your multi-currency forex card using channels such as NEFT, RTGS, or an in-app option.
- Currency Conversion: Understand the currency conversion rates and choose the currency you wish to load onto the card.
3. Making International Transactions
- Select UPI as Payment Method: While making an international payment, choose UPI as your preferred payment method.
- Enter Beneficiary Details: Input the beneficiary’s UPI ID or VPA (Virtual Payment Address). Ensure it’s associated with their international UPI-enabled forex card.
- Confirm and Authenticate: Verify the transaction details and authenticate the payment using your UPI PIN.
- Transaction Confirmation: Once confirmed, the amount will be deducted from your Forex card and transferred to the beneficiary’s account.
4. Considerations and Limitations
- Foreign Exchange Rates: Be aware of the forex rates as they fluctuate. Some apps provide real-time exchange rate information.
- UPI App Compatibility: Ensure that the UPI app you’re using supports international transactions and has partnerships with international banks.
- Transaction Fees: Be mindful of any fees associated with international UPI transactions, including currency conversion charges.
5. Security and Precautions
- UPI PIN Security: Keep your UPI PIN confidential, and don’t share it with anyone.
- Safe Networks: Use secure and trusted networks for international transactions.
- Regular Monitoring: Keep an eye on your transaction history to promptly detect unauthorized transactions.
Conclusion
In conclusion, UPI is an easy and convenient way to make international transactions. It eliminates the need to visit a bank and ensures that your money reaches its destination safely and securely.
With its user-friendly interface and real-time tracking, UPI has revolutionized how we make transactions. Follow the steps mentioned above, and you can quickly and conveniently make international transactions on UPI.