Tuesday, 02 January 2024 12:17 GMT

Union Minister Jyotiraditya Scindia Launches UPIUPU Integration Project In Dubai Here's How It Works


(MENAFN- Live Mint) Jyotiraditya M Scindia, Union Minister for Communications, launched the UPI-UPU Integration Project at the 28th Universal Postal Congress in Dubai on Tuesday morning.

This marks a landmark step in transforming cross-border remittances, aligning with India's vision to emerge as a leader in digital finance.

According to the Ministry of Communications, the project is a joint effort between the Department of Posts (DoP), NPCI International Payments Ltd (NIPL), and the Universal Postal Union (UPU).

What is the UPI-UPU integration project?

The project integrates India's Unified Payments Interface (UPI) with the UPU Interconnection Platform (UPU-IP) to facilitate payments across borders with the speed and affordability of UPI.

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It aims to create a seamless and secure payment channel that directly serves millions of families relying on remittances by combining the reach of the postal network with the speed and affordability of UPI.

Why it matters?

The project addresses long-standing challenges in international remittances, including high fees, slow processing times, and limited accessibility due to restrictive remittance corridors and international payment systems. The integration offers an alternative system that will not only reduce these processing costs but also speed up the process, thus widening financial access.

The UPU currently includes 192 member countries. Under the project, Scindia shared that India will engage in expertise-sharing, capacity-building, and cooperative innovation initiatives undertaken in the postal and payments domains.

Calling the project“more than a technology launch, but a social compact,” Scindia said:

“The reliability of the postal network combined with the speed of UPI means families across borders can send money faster, safer and at much lower cost. It reaffirms that public infrastructure built for citizens can be linked across borders to serve humanity better."

India will invest $10 million in postal sector

Scindia also announced that India will invest $10 million in boosting the global postal sector, with a special focus on building capabilities in the digital payments and e-commerce sectors.

As part of this effort, India will host regional workshops and dialogues,“ensuring every region has a strong equal voice.”

“We have signed Letter of Intents (LoIs) with Union partners including Africa, Caribbean, Latin America formalising contracts on trading, digital finance, ecommerce,” Scindia added.

Under Prime Minister Narendra Modi's Digital India initiative and vision of Viksit Bharat , Scindia said,“With Aadhaar, Jan Dhan and India Post Payments Bank, we have opened over 560 million accounts, most in women's names. India Post delivered over 900 million letters and parcels last year. This is the scale and spirit of inclusion we bring to the global stage.”

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Scindia also shared that in the last decade, the country's economic growth received a major push from Digital Public Infrastructure (DPI). He noted key examples such as UPI, Aadhar, Jan Dhan Yojana and DigiLocker that have helped advance its goals of accessibility.

Scindia also announced India's candidature for the Council of Administration and the Postal Operations Council of the UPU.

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