India and Sri Lanka working together to link UPI and Lanka Pay: PM Modi

Prime Minister Narendra Modi on Saturday announced that the governments of India and Sri Lanka are working together to link the Unified Payments Interface (UPI) and Lanka Pay, their respective digital payment systems.

The announcement was made during his address at the launch event of ferry services connecting Nagapattinam in India to Kankesanturai in Sri Lanka, conveyed through a video message.

Notably, a prior agreement on the acceptance of Unified Payments Interface (UPI) in Sri Lanka was signed during the two-day visit of Sri Lanka President Ranil Wickremesinghe to India, where both leaders, PM Modi and President Wickremesinghe, were involved in the signing process.

The linking of UPI and Lanka Pay will make it easier for people in both countries to make digital payments to each other. This is expected to boost trade and tourism between the two countries.

UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI). It allows users to make payments directly from their bank accounts using their smartphones. UPI has become the most popular digital payment system in India, with over 6 billion transactions processed every month.

Lanka Pay is a similar digital payment system developed by the Central Bank of Sri Lanka. It allows users to make payments directly from their bank accounts using their smartphones. Lanka Pay is the most popular digital payment system in Sri Lanka, with over 10 million users.

The linking of UPI and Lanka Pay is a significant step towards promoting digital payments between India and Sri Lanka. It is expected to benefit businesses and individuals in both countries.

What are the benefits of linking UPI and Lanka Pay?

There are several benefits to linking UPI and Lanka Pay, including:

Increased convenience: People in India and Sri Lanka will be able to make digital payments to each other using their smartphones, without having to go through a third-party payment provider.

Reduced costs: The linking of UPI and Lanka Pay is expected to reduce transaction costs for businesses and individuals.

Boosted trade and tourism: The linking of UPI and Lanka Pay is expected to boost trade and tourism between the two countries by making it easier for people to make payments.

When will UPI and Lanka Pay be linked?

The exact date of the linking of UPI and Lanka Pay has not yet been announced. However, it is expected to happen within the next few months.

The linking of UPI and Lanka Pay is a positive development for both India and Sri Lanka. It is expected to make it easier for people in both countries to make digital payments to each other, reduce transaction costs, and boost trade and tourism.