India and Sri Lanka to Collaborate on Fintech Connectivity
Prime Minister Narendra Modi announced on Oct 14 that the governments of India and Sri Lanka are collaborating on fintech sector connectivity by connecting the Unified Payments Interface (UPI) and Lanka Pay. PM Modi announced the plan to link UPI and Lanka Pay via video message while speaking at an event to launch ferry services between Nagapattinam in India and Kankesanthurai in Sri Lanka.
Previously, during Sri Lanka President Ranil Wickremesinghe's two-day visit to India, PM Modi and Sri Lanka President Ranil Wickremesinghe signed an agreement on Unified Payments Interface (UPI) acceptance in Sri Lanka.
In 2022, the National Payments Corporation of India (NPCI), the umbrella organisation that provides UPI services, will sign an agreement with Lyra, France's fast and secure online payment system. In 2023, UPI and Singapore's PayNow signed an agreement that will allow users in both countries to conduct cross-border transactions. The UPI payment system has already been adopted by the UAE, Bhutan, and Nepal.
The National Payments Corporation of India (NPCI)-run UPI reported 10.56 billion transactions in September, a decrease from the 10.58 billion transactions reported in August, when the instant payment mechanism crossed the 10 billion transaction mark for the first time.