Bharat Interface for Money – Unified Payments Interface (BHIM UPI) App
users from India can make digital payments in Bhutan. Bhutan is the first
country to adopt UPI to facilitate e-payments directly through banks. It is
the only country to both issue and accepts RuPay cards as well as BHIM-UPI.
This is the most cost-effective mobile-based payment system. UPI is also
very fast, a safe medium, and reliable cashless payments through the mobile
phone and has become one of the most prominent forms of digital
payments.
It stands out as a very good example and further strengthens the
cooperation between the two neighboring nations. The payment
infrastructures of the two countries are seamlessly connected. Since BHIM is
easy to use and regulated by the government, it has inspired trust among
users.
Since the launch of this innovative payment interface, the facility has made
financial transactions much easier for account holders. It benefits thousands
of Indian tourists who travel to Bhutan and is made effortless as it drastically
reduces the time taken to process a payment.
Adding a new milestone in financial integration between the two economies,
the facility is expected to further deepen the economic and financial linkages
between the two nations. It also boosts Bhutan’s economy, promotes the
integration of the financial systems, and augments cashless transactions
between the nationals of India and Bhutan.
This strategic partnership in the area of digital payments not only enhances
the ease of transacting for Indian travelers to Bhutan but also adds value to
the lives of customers in Bhutan. It helps residents of Bhutan to opt for
cashless payments to shopkeepers.
In addition, this interface supports the growth of e-commerce transactions
and has a tremendous potential to empower the development of next-
generation digital platforms for lending and payments.
Given that UPI is the cornerstone of India’s economic transformation and
revolution, this will certainly help Bhutan to move to curb the money
laundering activities and tax evasions and help sustain privacy.
This will also bring monetarily opportunities in crowdfunding, micro-
financing, peer-to-peer lending, credit rating, and loan disbursement that
can be built upon UPI.
This will also enable users to make instant, low-cost fund transfers directly
from one bank account to another between Bhutan and India.
The online payment system was launched in 2019 by NPCI International
Payments Ltd (NIPL) of India in partnership with the Royal Monetary
Authority (RMA) of Bhutan following the success of the indigenously
developed RuPay Card in Bhutan.
