Security and Regulatory Challenges Raised as UPI Expands Globally, Centre Tells Parliament

As India’s UPI expands internationally, concerns over security, regulation, and technical integration were raised in Parliament, with the government outlining growth figures and challenges in linking global payment systems.

New Delhi | 03 February, 2026:India’s Unified Payments Interface (UPI), which has emerged as a key pillar of the country’s digital payments ecosystem, is steadily expanding its global footprint. However, concerns related to security, regulation, and operational control in international markets have been flagged in Parliament.

Bharatiya Janata Party Member of Parliament Medha Kulkarni raised these issues in the Rajya Sabha through a starred question, seeking clarity on the regulatory, technical, and security-related challenges faced during UPI’s international expansion. She also questioned the impact of these challenges on the timeline and scale of implementation when linking UPI with foreign payment systems.Responding on behalf of the government, Union Finance Minister Nirmala Sitharaman informed the House that UPI is currently operational or linked with local payment systems in eight countries Bhutan, France, Mauritius, Nepal, Qatar, Singapore, Sri Lanka, and the United Arab Emirates. She highlighted that international UPI transactions have seen a sharp rise over the last three financial years.

According to official data presented in Parliament, the number of international UPI transactions increased significantly from 37,060 transactions in the financial year 2023–24 to over 14.86 lakh transactions by December-end of the 2025–26 financial year.

Through supplementary questions, Kulkarni sought further details on the regulatory hurdles, technical compatibility issues, and bilateral coordination required to integrate UPI with overseas payment platforms. She also asked how these factors influence the pace and scope of UPI’s global rollout.Replying to these concerns, Minister of State for Finance Pankaj Chaudhary stated that the responsibility for UPI’s international expansion rests with NPCI International Payments Limited (NIPL), a subsidiary of the National Payments Corporation of India (NPCI). He explained that challenges arise due to differences in technological infrastructure, ownership of payment schemes, and varying regulatory frameworks across countries.

Chaudhary added that these issues are being addressed through close coordination between the Reserve Bank of India and authorities in partner countries. Bilateral cooperation mechanisms, he said, are playing a key role in resolving operational and regulatory hurdles as India works to strengthen UPI’s presence on the global digital payments landscape.

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