Government Plans to Expand UPI Services to More Countries, Particularly East Asia
The government plans to expand UPI services to more countries, especially in East Asia, beyond the current eight operational markets. UPI transactions reached 21 billion in December 2025, while the Stand Up India scheme has sanctioned 275,000 loans worth ₹62,000.00 crore since April 2016. The initiative aims to strengthen financial inclusion with 99.9% village coverage for banking services.
*this image is generated using AI for illustrative purposes only.
The government is actively working to expand India's homegrown Unified Payments Interface (UPI) to additional overseas markets, particularly targeting East Asian countries, financial services secretary M. Nagaraju announced at the Global Inclusive Finance India Summit in New Delhi. The digital payment system has demonstrated remarkable growth domestically and is now poised for broader international adoption.
Current UPI International Presence
UPI transactions are currently accepted across eight countries, establishing India's digital payment footprint in diverse global markets. The existing network spans multiple regions and economic zones.
| Region/Country: | Status |
|---|---|
| Bhutan: | Operational |
| Singapore: | Operational |
| Qatar: | Operational |
| Mauritius: | Operational |
| Nepal: | Operational |
| United Arab Emirates: | Operational |
| Sri Lanka: | Operational |
| France: | Operational |
Nagaraju emphasized that digital payments in India have grown significantly due to UPI adoption, with the interface now being prepared to facilitate payments in additional overseas markets. UPI transactions crossed 21 billion in December 2025, according to the finance ministry, driven by increased adoption of PM Jan Dhan Yojana accounts.
Stand Up India Scheme Expansion
As part of efforts to deepen financial inclusion initiatives, the government is expanding the scope of the Stand Up India scheme to provide larger loans to more beneficiaries, particularly focusing on Scheduled Castes (SC) and Scheduled Tribes (ST) communities. The scheme has demonstrated strong performance since its inception, with notable participation patterns across different demographic groups.
| Parameter: | Details |
|---|---|
| Loan Range: | ₹10.00 lakh to ₹1.00 crore |
| Target Sectors: | Manufacturing, services, trading, allied sectors |
| Total Loans Sanctioned: | 275,000 loans |
| Total Value: | ₹62,000.00 crore |
| Scheme Duration: | Since April 2016 |
| Higher Participation: | Women, including SC and ST borrowers |
The Stand Up India scheme aims to promote entrepreneurship among women and SC and ST communities by facilitating bank loans for establishing greenfield enterprises across various sectors.
Financial Infrastructure Development
The National Payments Corporation of India (NPCI), which operates India's retail payments and settlement systems, runs the UPI interface. The financial services secretary highlighted that the department is working to provide fintech companies with access to global markets through trade deals, supporting the broader digitalization agenda.
Regarding banking infrastructure, Nagaraju noted that the government is ensuring banking touchpoints reach every corner of the country as part of its financial inclusion plan. Currently, 99.9% of villages are covered, with remaining gaps in difficult terrain areas such as parts of Arunachal Pradesh to be addressed through banking touchpoints within a five-kilometer radius.
Economic Impact and Future Outlook
Nagaraju emphasized that financial inclusion serves as a key driver for economic growth and poverty alleviation, creating a multiplier effect that benefits larger segments of the economy. The expansion of digital payment systems and enhanced access to credit facilities aligns with the government's broader economic development strategy.
Vivek Iyer, partner and financial services risk leader at Grant Thornton Bharat, commented on expectations for Budget 2026, stating that India requires a financial architecture capable of handling volatility while encouraging innovation. He suggested that the government's focus should shift from purely expanding credit access to improving the quality, resilience, and intelligence of the credit and savings ecosystem.
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