India, Indonesia move to link digital payments as Modi visit deepens strategic ties
NEW DELHI: India and Indonesia are set to link their digital payment systems, allowing faster and easier cross-border transactions as the two countries seek to
NEW DELHI: India and Indonesia are set to link their digital payment systems, allowing faster and easier cross-border transactions as the two countries seek to expand economic and strategic cooperation. The agreement to integrate India’s Unified Payments Interface (UPI) with Indonesia’s payment system was announced by Prime Minister Narendra Modi on Tuesday during a joint statement with Indonesian President Prabowo Subianto, part of Modi’s three-day visit to the country. The move is aimed at improving the ease of doing business and travel between the two countries, as India seeks to expand the global footprint of its digital public infrastructure. Quick answers to key questions • 5 QUESTIONS 1 What is the main purpose of linking India's UPI with Indonesia's payment system? ⌵ The main purpose of linking India's UPI with Indonesia's payment system is to facilitate faster and easier cross-border transactions, thereby improving the ease of doing business and travel between the two countries. 2 How will India's digital public infrastructure impact its cooperation with Indonesia? ⌵ India's digital public infrastructure, including UPI, is expected to expand its global footprint by enhancing economic and strategic ties with Indonesia, promoting better transaction capabilities and cooperative agreements. 3 Why is India focusing on enhancing its economic ties with Indonesia during PM Modi's visit? ⌵ India is focusing on enhancing economic ties with Indonesia as part of its Act East Policy to strengthen bilateral relations, promote trade, and support cooperative initiatives in various sectors including defence and technology.
4 What are some specific agreements signed between India and Indonesia during PM Modi's visit? ⌵ Some specific agreements signed include cooperation on the BrahMos missile system, development of Indonesia's electronic voting machines, and a series of memorandums on maritime safety and healthcare cooperation. 5 How can the collaboration on electronic voting machines benefit Indonesia's electoral system? ⌵ The collaboration on electronic voting machines will help Indonesia transition from a traditional paper ballot system to digital voting, enhancing the efficiency and integrity of its electoral processes for the upcoming 2029 elections. India’s UPI system is currently available in more than eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar, according to a 6 February official statement. India has also signed memorandums of understanding or cooperation agreements on digital public infrastructure with 23 countries. UPI transactions have grown sharply since the platform’s launch, with annual transaction volumes rising from 20 million in FY17 to more than 241.62 billion in FY26, an almost 12,000-fold increase, according to government data. Transaction value during the period rose from ₹0.07 trillion to around ₹314 trillion, an increase of more than 4,000 times. Strategic deepening The two countries also announced a series of agreements spanning defence, healthcare, manufacturing and disaster management, underscoring efforts to widen cooperation between India and a key Southeast Asian partner.
The BriefWire