UPI in Uzbekistan: NIPL-NIPC Partnership, UZQR, UPI and India’s Global Digital Payment Expansion

Why in news?

On 30 August 2026, NPCI International Payments Limited signed a commercial agreement with Uzbekistan’s National Interbank Processing Centre JSC (NIPC) to enable UPI-based merchant payments in Uzbekistan.

Key Facts 

Key Highlights of the India-Uzbekistan UPI Agreement

• UPI Payments through UZQR: Indian travellers will be able to scan UZQR codes using compatible UPI-enabled applications and make payments to merchants in Uzbekistan.
• Person-to-Merchant Payments: The arrangement primarily facilitates Person-to-Merchant (P2M) payments. This means an Indian user can pay participating merchants in Uzbekistan directly from an Indian bank account through the UPI ecosystem.
• Wide Merchant Acceptance: UZQR is Uzbekistan’s national interoperable QR infrastructure mandated by the Central Bank of Uzbekistan. Integration with this infrastructure is intended to provide UPI users with various sectors such as retail, hospitality, tourism and other service merchants.
• Reduced Dependence on Cash and Cards: Indian travellers will have an additional digital-payment option instead of relying entirely on cash or international payment cards.

How Will UPI Payments in Uzbekistan Work?

• Indian Traveller → UPI-enabled Application → Scans Uzbekistan’s UZQR → Payment request processed through connected payment infrastructure → Amount debited from Indian bank account → Merchant in Uzbekistan receives payment

What is UZQR?

• UZQR is Uzbekistan’s national interoperable QR-code infrastructure for digital payments. Instead of merchants depending on multiple isolated QR-code networks, an interoperable QR infrastructure seeks to provide a common framework through which compatible payment systems can interact.
• Under the NIPL-NIPC partnership, Indian UPI applications are being connected with this national QR ecosystem for merchant acceptance.

What is HUMO?

• HUMO is a national payment system of Uzbekistan operated by the National Interbank Processing Centre JSC (NIPC).
• Under the new arrangement, HUMO has been designated as NIPL’s authorised partner for cross-border merchant acceptance.
• Its role is therefore crucial in connecting India’s UPI ecosystem with Uzbekistan’s domestic merchant-payment infrastructure.

What is Unified Payments Interface (UPI)?

• An instant digital-payment system developed by the National Payments Corporation of India (NPCI). It enables users to transfer money between participating bank accounts through mobile applications.
• UPI was launched in 2016 and has subsequently become one of the central pillars of India’s digital-payment ecosystem.
• Important features are:
  • Instant bank-to-bank payments
  • Available round the clock
  • Supports Person-to-Person (P2P) and Person-to-Merchant (P2M) payments
  • QR-code-based merchant payments
  • Multiple bank accounts can be accessed through compatible applications
  • Designed for fast and convenient digital transactions

What is National Payments Corporation of India (NPCI)?

• An umbrella organisation for operating retail payment and settlement systems in India. It was established as an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007.
• Important NPCI-associated payment products and systems include UPI, RuPay, Immediate Payment Service (IMPS), Bharat Bill Payment System, National Automated Clearing House (NACH) and Aadhaar Enabled Payment System (AePS). 

International Expansion of UPI

• According to the Ministry of Finance announcement, UPI was already accepted in 10 countries (Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia, and Greece) before the Uzbekistan arrangement. The Uzbekistan partnership further expands the international footprint of the UPI ecosystem.

Why is the Uzbekistan Partnership Important?

• Expansion of India’s Digital Public Infrastructure: India has increasingly promoted its digital platforms and payment technologies as part of its broader Digital Public Infrastructure (DPI) approach. The Uzbekistan partnership demonstrates how Indian digital-payment technology can interact with another country’s domestic payment infrastructure.
• Benefits for Indian Students: Indian students studying or staying in Uzbekistan can potentially benefit from familiar UPI-based merchant payments.
• Promotion of Tourism: Convenient digital-payment facilities can improve the travel experience. A tourist who can use a familiar payment application may face fewer difficulties in paying for hotels, restaurants, retail purchases and services.
• Strengthening India-Uzbekistan Relations: India and Uzbekistan also decided to elevate their relationship to a Comprehensive Strategic Partnership, alongside cooperation in areas such as tourism, minerals, education, environment, culture and economic engagement.

Strategic Significance for India

• Digital Diplomacy: UPI is increasingly emerging as an instrument of India’s digital diplomacy. By partnering with other countries, India can demonstrate its capabilities in developing scalable and interoperable digital-payment systems.
• FinTech Leadership: The internationalisation of UPI strengthens India’s position in the global FinTech and digital-payments ecosystem.
• UPI and Digital Public Infrastructure: India’s DPI ecosystem broadly includes platforms supporting Digital Identity (Aadhaar), Digital Payments (UPI), Digital Documents (DigiLocker) and Consent-based financial data sharing (Account Aggregator framework). 

Challenges in Internationalising UPI

• Regulatory Differences: Every country has its own banking, payment, foreign-exchange and data-protection regulations. Cross-border payment systems therefore require regulatory coordination.
• Currency Conversion: Cross-border payments involve conversion between currencies, making exchange-rate transparency and settlement mechanisms important.
• Cyber security: As digital-payment networks expand internationally, protection against fraud, cyber-attacks and unauthorised transactions becomes increasingly important.
• Consumer Protection: Clear mechanisms are needed for failed transactions, refunds, disputes, fraud reporting and grievance redressal.
• Merchant and Consumer Awareness: The success of cross-border UPI acceptance ultimately depends on widespread merchant acceptance and awareness among travellers.

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