National Payment Corporation of India (NPCI), which handles UPI payments in India, has implemented a new directive for international UPI payments. Starting April 30, international UPI users will not be allowed to make QR share and pay-based international UPI transactions. This directive is only applicable for Person to Merchant transactions. A circular issued on April 8 by NPCI said, "QR Share and Pay shall not be allowed for all UPI Global P2M transactions and Payer PSP to ensure that Payer UPI app identifies the same." There is no change in other types of UPI transaction limits, including domestic QR Share and Pay.
In simple terms, this means if you purchase something from a shop or merchant located in another country, they provide you with a QR code to help you make your payment, and you save this code in your phone’s photo gallery. If you try to scan that saved QR code later to make a payment, it won’t work. However, you can still scan QR codes in person at the shop when you're there.
At present, as per the NPCI website, around 7 countries, including France, Mauritius, Nepal, Singapore, Sri Lanka, and the UAE, accept India’s UPI-based Bharat QR payments.
Why this decision has been taken:
NPCI has not provided specific reasons for its recent decision; however, it appears to be a response to the rising incidence of scams. Many of these fraudulent activities are reportedly being orchestrated by individuals located in other countries, targeting innocent individuals in India. This initiative may serve as a measure to curb these scams and protect consumers from exploitation.
For domestic transactions using QR codes for sharing and payments, there is a limit of Rs 2,000 for payments made to non-verified offline merchants.
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