Synopsis

India's Unified Payments Interface (UPI) system is now instrumental in aiding Nepal's disaster relief fund donations. Donors in India can activate UPI International for easier contributions. This marks a new use case for UPI beyond tourist payments. Nepal's embassy requested activation for QR code donations. This development highlights UPI's growing global acceptance.

India’s Unified Payments Interface (UPI) is finding a new role in Nepal, this time not as a payment option for Indian tourists, but as a channel for Indians to contribute to the country’s disaster relief efforts.



The Embassy of Nepal in India has asked people in India who are unable to make contributions to the Prime Minister Disaster Relief Fund through designated QR codes to switch on UPI International on their UPI or banking apps before making the payment.



“Friends and well-wishers in India who are encountering difficulty while contributing to the Prime Minister Disaster Relief Fund of the Government of Nepal by scanning the designated QR codes are kindly requested to activate ‘UPI International’ in their UPI/banking application before proceeding with the payment,” the embassy said in a post on X.

The appeal comes after deadly flash floods near the Nepal-Tibet border disrupted communications and affected parts of Nepal.



Also Read: Nepal Flash Flood LIVE Updates: At least 1,127 dead, 3,916 missing as rescue efforts enter eighth day

Friends and well-wishers in India who are encountering difficulty while contributing to the Prime Minister Disaster Relief Fund of the Government of Nepal by scanning the designated QR codes are kindly requested to activate “UPI International” in their UPI/banking application… pic.twitter.com/YFUjvNRJ9r

— Nepal Embassy, India (@EONIndia) August 31, 2026

UPI expands beyond tourist payments

The Nepal appeal puts UPI International to work in a setting that is different from its more familiar overseas use case, allowing Indians to make payments while travelling abroad.



Donors need to enable the international payments option on their UPI application and then scan the designated QR code again to complete the contribution. Depending on the bank or payment app, the activation process and validity period may differ.



The payment is processed as an international UPI transaction, with the amount shown in Indian rupees converted into Nepalese rupees.



The Nepal government has also provided an online gateway for contributions to the Prime Minister Disaster Relief Fund. International donors can additionally use Visa and Mastercard debit and credit cards.



The use of UPI for a foreign government's relief appeal could broaden the role of the payment system as its international footprint expands.

‘Meaningful marker’ for UPI abroad

Ashwin Bhatnagar, CEO and co-founder of cross-border fintech firm Xflow, told Business Standard that the development reflects the growing recognition of UPI beyond India’s domestic payments ecosystem.



“For UPI International under NIPL (NPCI International Payments Limited) to be placed alongside established rails like Alipay and UnionPay shows that scale and trust are starting to translate into global acceptance, not just domestic dominance. What stands out is that a foreign entity is choosing to collect through UPI rather than traditional banking channels, a use case we expect to grow as global organisations recognise that offering UPI as a collection option makes them easier to pay into,” Bhatnagar said, according to Business Standard.



He said the Nepal relief-fund use case was also different from the way UPI International has traditionally been positioned.



“This is a meaningful marker for UPI’s journey outside India. UPI International has largely been seen as a convenience for outbound tourists and non-resident Indians. The Nepal Embassy listing it alongside Alipay and UnionPay for Prime Minister Disaster Relief Fund donations is different; it’s UPI being recognised as a legitimate inbound collection rail by a foreign government,” Bhatnagar added, according to Business Standard.



Also Read: Four Indian-origin Americans missing after Nepal-Tibet floods; Sewa International releases USD 100K in relief drive

India-Nepal payments link

The development builds on the cross-border payments arrangement between India and Nepal.



NIPL and Nepal’s Fonepay Payment Service launched cross-border UPI payments in March 2024. The initial rollout allowed Indian visitors to scan Fonepay QR codes at Nepali merchants and pay directly from their Indian bank accounts, while merchants received the money in Nepalese rupees.



UPI International is operated by NIPL, the international arm of the National Payments Corporation of India (NPCI), which runs the UPI network.



UPI is now accepted in countries including France, Qatar, the UAE, Bhutan, Cambodia, Singapore, Sri Lanka and Mauritius, while deployments are underway in other markets.

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