UPI Launched In Sri Lanka and Mauritius

India’s UPI Launched In Sri Lanka And Mauritius, Following France

In a significant move to promote regional financial integration and digital payments adoption, India launched its Unified Payments Interface (UPI) and RuPay card services in both Sri Lanka and Mauritius on February 12th, 2024. This expansion marks a key milestone in India’s efforts to position its homegrown payment platforms as global players, following the successful launch of UPI in France earlier this month.

The official launch ceremony, held virtually, saw the participation of Prime Minister Narendra Modi of India, the President of Sri Lanka, Mr Ranil Wickremesinghe and the Prime Minister of Mauritius, Mr Pravind Jugnauth. This high-level participation underscores the strategic importance placed on this initiative by all parties involved.

Driving Economic Growth Through Cross-Border Payments

The immediate impact of this launch is the facilitation of seamless and cost-effective peer-to-peer (P2P) transactions between citizens of India, Sri Lanka, and Mauritius. This is expected to boost tourism, trade, and remittances between these nations, contributing to their economic growth. With millions of Indian tourists visiting Sri Lanka and Mauritius annually, the convenience of using familiar payment methods like UPI and RuPay cards is likely to encourage tourism spending. Similarly, simplified cross-border trade settlements can potentially increase trade volumes between these countries.

“India’s UPI or United Payments Interface comes in a new role today – Uniting Partners with India” – Speaking at the launch, Prime Minister of India Mr Narendra Modi.

Beyond immediate economic benefits, the launch of UPI holds immense potential for promoting financial inclusion in both Sri Lanka and Mauritius. A significant portion of the population in these countries remains unbanked or underbanked. UPI’s user-friendly interface and low entry barriers can act as a gateway to formal financial services for these individuals, bringing them into the mainstream economy.

A Step Towards A Cashless Future

The launch of UPI and RuPay in Sri Lanka and Mauritius marks a significant step towards achieving the vision of a cashless and financially inclusive South Asia. It demonstrates India’s commitment to leveraging technological prowess to empower its neighbours and foster regional economic cooperation. As challenges are addressed and user adoption grows, this initiative has the potential to reshape the regional payments landscape and pave the way for a more integrated and digital future for South Asia.

Impact Of The UPI

India’s Unified Payments Interface (UPI) has taken the fintech scene by storm. Gone are the days of tedious and complicated bank transactions; instead, simple virtual payment addresses (VPAs) enable instant, cashless transactions anytime, anywhere. This user-friendly, affordable platform has brought millions into the banking and financial system, boosting inclusion. Merchants have also flourished, accepting secure QR code payments that eliminate cash handling risks and expand their reach. 

Speaking about the convenience and speed of UPI transactions, the Prime Minister of India informed that more than 100 billion transactions took place via UPI last year worth INR 2 lakh crores or 8 trillion Sri Lankan rupees or 1 trillion Mauritius rupees. UPI’s impact extends beyond just transactions, fueling e-commerce growth and the digital economy with its instant, secure nature that builds trust among online shoppers.

AuthBridge is the gold standard in the world of Background Verification and Due Diligence. Connect with us today and explore our range of services including UPI verification, Aadhaar verification and more.

RBI OTP Future Plan

Beyond OTP: RBI Hints At New Alternatives For Digital Payments Verification

For millions of Indians, the familiar chime of an incoming message and the sight of a six-digit code have become synonymous with security in the digital age. One-time passwords (OTPs), delivered conveniently via SMS, have served as the gatekeepers of our online transactions, guarding access to bank accounts, e-wallets, and countless digital services. Yet, like any system, their vulnerabilities become increasingly evident with time.

In their recent press release, dated February 8th, 2024, titled “Statement on Developmental and Regulatory Policies”, the Reserve Bank of India (RBI) hinted at a few changes, paving the way for a more secure and dynamic future of digital payments. The RBI proposed a principle-based framework for the authentication of digital payment transactions, hinting a significant shift away from the ubiquitous SMS-based OTP multi-factor authentication method for digital payment transactions.

Speaking at the monetary policy statement address RBI Governor Mr. Shaktikanta Das stated, “To facilitate adoption of alternative authentication mechanisms for enhancing the security of digital payments, it is proposed to put in place a principle-based framework for authentication of such transactions.”

While their convenience is undeniable, OTPs have their challenges. Phishing scams and SIM-swapping exploits have exposed their susceptibility to manipulation, leading to fraudulent transactions and financial losses.

Embracing Innovation: A Diverse Authentication Landscape

The proposed framework reflects the RBI’s understanding that a single technology cannot effectively address the evolving security landscape. By adopting a principle-based approach, they aim to facilitate the use of alternative, more secure and user-friendly authentication methods. This opens doors to a spectrum of possibilities, including:

  • Biometric Authentication: Utilizing fingerprints, iris scans, or facial recognition for a secure and personalized experience.
  • Token-based systems: Employing hardware tokens or software solutions to generate unique, one-time codes for authorization.
  • Push Notifications: Receiving secure in-app prompts requiring confirmation for transactions, eliminating the need for traditional passwords.
  • Risk-based authentication: Tailoring authentication methods based on individual transaction details and user profiles for a dynamic approach.

Imagine choosing your preferred authentication method based on your needs and comfort level, fostering a more inclusive and personalised digital payment environment.

Challenges and Opportunities

This transformative journey presents both challenges and opportunities. Payment providers will need to invest in infrastructure and user education. Regulatory oversight and industry collaboration will be crucial to ensure a smooth and secure transition. Here are some key aspects to consider:

  • Technology Adoption: Identifying and integrating robust and cost-effective authentication solutions.
  • Standardisation: Ensuring interoperability between different providers and technologies.
  • User Education: Building awareness and trust in new authentication methods.
  • Data Privacy: Implementing robust data security protocols and addressing user concerns.

Other Important Announcements

Apart from this proposal on a Principle-based Framework for Authentication of Digital Payment Transactions, the RBI also proposed a few measures to enhance the Robustness of the Aadhaar Enabled Payment System (AePS). To enhance the security of AePS transactions, the RBI has proposed to streamline the onboarding process, including mandatory due diligence, for AePS touchpoint operators, that has to be followed by banks. The RBI has also added that they will also consider additional fraud risk management requirements. The banking regulator said that the instructions about the AePS will be issued shortly. Both of these measures are expected to help in controlling the different frauds in the system.

The RBI’s proposal marks a significant turning point in India’s digital payment journey. As we move beyond the era of OTPs, a future beckons where security and convenience go hand-in-hand. By embracing innovation, prioritising user safety, and collaborating actively, we can collectively build a digital payment ecosystem that is not only accessible but also trustworthy and resilient.

About AuthBridge

With over 18 years of experience in the industry, AuthBridge has been at the forefront of creating databases, conducting data mining and live scraping of data, and building algorithms to enable instant searches to perform background checks without compromising on data security. AuthBridge is trusted by over 2,000 clients in 140 countries in industries like BFSI, Manufacturing, e-commerce and more, for their various needs. Our database contains over 1 billion proprietary data records for conducting background checks and we conduct an impressive volume of 15 million background checks every month.

Want to Verify More Tin Numbers?

Want to Verify More Pan Numbers?

Want to Verify More UAN Numbers?

Want to Verify More Pan Dob ?

Want to Verify More Aadhar Numbers?

Want to Check More Udyam Registration/Reference Numbers?

Want to Verify More GST Numbers?