UPSC Prelims 2025 Q69: Indian Economy – Digital Payments & Financial Inclusion
- (a) Only two
- (b) Only three
- (c) Only four
- (d) All the five
Answer: (b) Only three
Explanation
UPI International Acceptance — Countries where India's UPI works for merchant payments
| Country | UPI Accepted? | Notes |
|---|---|---|
| UAE | YES | NPCI International + UAE exchange agreement; UPI QR codes accepted |
| France | YES | Enabled for Indian tourists at select merchants via NPCI International partnership |
| Germany | NO (as of 2025) | Not yet part of UPI international rollout |
| Singapore | YES | UPI-PayNow linkage since Feb 2023; real-time cross-border payments |
| Bangladesh | NO | Despite geographic proximity, Bangladesh uses own mobile payment systems; UPI not accepted |
Countries with UPI: UAE, France, Singapore = Only three
UPI International Rollout (as of 2025):
| Country | Year Enabled | Partnership |
|---|---|---|
| Singapore | 2023 | UPI-PayNow linkage |
| UAE | 2022 | NPCI International + LuLu Exchange |
| France | 2023 | For Indian tourists (Eiffel Tower, select merchants) |
| UK | 2024 (select) | Via NPCI International |
| Bhutan, Nepal | Earlier | RuPay + UPI linkage |
Answer: (b) Only three.
Why each option is right or wrong
- (a) Incorrect. 'Only two' would exclude one of UAE, France, or Singapore — all three have confirmed UPI acceptance for Indian travellers/merchants.
- (b) CORRECT. UAE (merchant payments via exchange), France (tourist QR payments), and Singapore (UPI–PayNow linkage) = three countries. Germany and Bangladesh do not yet support UPI payments.
- (c) Incorrect. 'Only four' would include Germany or Bangladesh. Germany has not been formally integrated into the UPI international network. Bangladesh has its own separate mobile payment infrastructure.
- (d) Incorrect. 'All five' would mean Germany and Bangladesh also accept UPI — neither was part of the official UPI international acceptance rollout as of early 2025.
Key point
UPI accepted internationally: UAE, France, Singapore (among the given list). Germany and Bangladesh are NOT yet in UPI's international merchant payment network.
Remember
Among UAE, France, Germany, Singapore, Bangladesh — UPI works in UAE, France, Singapore (3 countries). Germany and Bangladesh are NOT in UPI's international network as of 2025.
Common mistakes
- Assuming all neighbouring or friendly countries accept UPI — Bangladesh has its own bKash system and has not integrated UPI.
- Thinking Germany accepts UPI because of India-EU ties — UPI in Europe was specifically launched for French tourist spots, not across the EU.
- Confusing RuPay card acceptance with UPI acceptance — they have overlapping but distinct international footprints.
Exam tip
UPI international cheatsheet (2025): Singapore (PayNow link), UAE (exchange merchants), France (tourist QR), Bhutan, Nepal, Sri Lanka, Mauritius, UK (select). Not yet: Germany, Bangladesh, most of Africa. NPCI International is the entity driving expansion.
Sources
- NPCI International Payments Limited — UPI Global Rollout
- Ministry of External Affairs — UPI International Acceptance Updates 2024–25
- Reserve Bank of India — Payment Systems Report