How can non-residents of India use Indian payment instruments?

How can non-residents of India use Indian payment instruments? A complete guide

I. Why do non-residents of India need to use Indian payment instruments?

As globalisation accelerates, more and more non-residents of India need to transact with business partners in India, purchase goods or services in India, or transfer money to friends and relatives in India. In this context, understanding and using payment instruments in India has become particularly important.

For business people, the use of local payment methods can significantly improve transaction efficiency and reduce costs; international students and short-term workers can use these tools to easily manage their daily expenses; and digital nomads and remote workers need reliable local payment methods when receiving payments from Indian companies.

II. Introduction to payment platforms mainly applicable to non-residents of India

UPI International (UPI International)

UPI (Unified Payments Interface) is currently the most popular real-time payment system. the international version of UPI, launched in 2023, allows foreign users to participate directly in the system through supported international bank cards. Ten countries, including Singapore, have already taken the lead in accessing the service.

Registration Process:

Download UPI-enabled banking apps such as BHIM or third-party apps such as PhonePe
Select "International User" registration option
Verify passport information and foreign mobile phone number
Bind a Visa/Mastercard credit or debit card

Paytm Cross Border Account

Paytm offers dedicated NRO (Non-Resident Ordinary) account services as a full-featured financial super app:

applicable population: Expatriates with OCI card or foreigners working/studying in India
Featured Functions::
- INR balance storage
- UPI ID creation privileges
- Bill Pay and Merchant Scanner Payment

Razorpay Cross Border Solutions

Professional programmes for business users:

Multi-currency settlement: Supports automatic conversion of major currencies such as USD and EUR to INR
Compliance Advantage: FEMA filing has been completed, in line with RBI foreign exchange regulations
API integrationGlobal Acquiring: Can be embedded in e-commerce website or APP to realise global acquiring

III. Detailed Operating Guidelines and Precautions

KYC Certification Points Explained (Using Paytm as an example)

Basic Material Requirements Table

Type of document	Validity requirements	Additional Notes
Passport Home Page	More than 6 months remaining	Colour scans required
Visa page/OIC card	–	–
Proof of address (English)	Within the last 3 months	[Note] Access to utility bills

[Note] Some platforms accept hotel booking confirmation letters as temporary address proof.

Analysis of common reasons for rejection
- "Selfie photos are poorly lit" - it is recommended that they be taken in natural light and without glasses.
- "Inconsistent Signature" - The electronic signature needs to be consistent with the last page of the passport.

Hands-on steps for UPI cross-border transfers (using Google Pay as an example).

1️⃣ Go to Send Money screen → select International Transfer
2️⃣ Enter the recipient's Virtual Payment Address (VPA) e.g. username@upi
3️⃣Fill in the amount and the estimated exchange rate and commission will be displayed automatically.
4️⃣ Double Verification (SMS + Email OTP) to complete the transaction

take note of:: A maximum of Rs 50,000 (approximately US$ 600) for a single transaction, not exceeding the equivalent of US$ 2,000 per day in aggregate.

IV. Comparative table of cost structure and limits

Cost analysis of the three main channels:

account opening fee	Transfer fee	Currency Conversion Fee	daily limit
UPI International	freeware	0.5%-1%	Charged by the card issuer	–
Paytm NRO	-₹500 (refundable)	Domestic free; cross-border 0.25%	-₹10,000,000
Wise	–	Fixed from $5 +0.41% exchange rate bonus	– $50,000

Source: Latest tariffs for 2024 for all platforms

From the table.
-UPI programme preferred for small-value, high-frequency trading
-Large sums of money can be handled more economically by considering traditional banking channels.

V. List of safety and security measures

To ensure the safety of your funds please make sure to.

✅ Enable biometric login + SIM PIN double protection
✅ Set the threshold for secondary confirmation per transaction (recommended > Rs. 2000)
✅Remove unfamiliar terminals by periodically checking the list of associated devices

Risk Warning Case: A Dubai user's account was frozen for 37 days due to failure to renew an expired visa - a reminder to keep your documents valid!

As you can see from the above detailed introduction, although there are certain limitations, the existing technical means have greatly improved the convenience for foreigners to use INR payment. The key is to choose the right service platform according to your needs and to strictly comply with local financial regulations.

VI. Frequently Asked Questions (FAQ)

Q1: Can I sign up for UPI without an Indian mobile number?

A: From 2024, some banks like Axis and HDFC have supported the registration of international number +86/+1 etc. but the functionality may be limited. Suggestion:

Interim solution: purchase of an Indian virtual number (e.g. Doosra)
Long-term solution: subscribe to Jio/Airtel's overseas subscriber package

Q2: Can Chinese citizens open a Paytm payment wallet?

A: A distinction needs to be made between account types:
✔️ Basic Wallet(Limit Rs. 10,000): Can be opened with a tourist visa
✖️ Full-featured wallet: PAN card or OCI document must be provided

special accessPaytm Cross Border Pass: Primary KYC via WeChat's "Paytm Cross Border Pass" applet

Q3: What are the differences in permissions between NRIs and regular foreigners?

Compare and contrast key differences:

functionality	NRI [Note]	ordinary foreigner
fixed deposit	✓ up to 5Cr	×
share transaction	✓ Demat account required	ETFs only
Loan Application	Interest Rate Offer +0.5%	–

[Note] Non-Resident Indian means an expatriate of Indian origin.

VII. A bag of alternatives

Consider when mainstream channels are blocked:

🔹 cryptocurrency transit law

Convert USDT to INR via WazirX (daily limit Rs 25,000)
Compliance Tip: Keep Complete Transaction Records for Inspection

🔹 Agency collection services

Airwallex and other organisations offer virtual Indian collection accounts
Suitable for e-commerce sellers at a rate of around 1.2%+₹15/pen

🔹 Tips for optimising traditional bank wire transfers

Add XXX branch number after SWIFT code to speed up processing
HDFC/ICICI has fast track for Chinese companies

VIII. Tracking of latest policy developments

Reforms to watch in 2024:

📌 RBI proposes to launch 'lightweight KYC' (trial in July):
- Only passport + e-visa required to open an account
- UPI limit raised to Rs 1 lakh/day

📌 GST Tax Linkage (effective September):
5% GST refund for foreign users' purchases
Conditions:Spend over Rs. 5000 in a single shop on the same day and retain the invoice.

IX. Practical case references

[Scenario] Hangzhou cross-border e-commerce company pays suppliers in Mumbai
- sore point : The other party only accepts instant UPI to the account
- prescription ::

Open an NRO account through Airwallex
Wise top-up USD is automatically converted to INR
3.生成@airwallex.upi专属VPA完成支付
- save costs : Save 32% in handling fees compared to traditional TT

[Data] Comparison table before and after use

take a period of (x amount of time)	Cost success rate
old way	3 working days	$35+
new programme	<30 minutes	< $10

X. Flowchart of the final selection proposal

graph TD.

    A[type of demand] --> B{amount size}.

    B --  C [UPI International].

    B --> $100 --> D {frequent or not}.

    D -- Yes --> E [Paytm Corporate Account].

    D -- No --> F [Razorpay single payment].

With expert reminders ⚠️:
- OCI cardholders should give preference to direct bank UPI services (SBI/Yono)
-Be wary of phishing apps that ask for an advance deposit!

This guide is continuously updated for Q2 2024, and we will be the first to add to it as new regulations are likely to be issued by the RBI in August. We recommend bookmarking this article and checking the revision notes regularly. If you have specific operational queries, feel free to leave a comment in the comments section for customised answers.

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