3rd G20 meet: After France, India in talks with Indonesia over UPI linkage

India is in talks with Indonesia to link Indonesia's payment system with UPI that would enable transaction in local currency. Finance Minister Nirmala Sitharaman discussed linking UPI with her Indonesia counterpart Sri Mulyani Indrawati.

The two countries announced the launch of ‘Economic and Financial Dialogue’ that focuses on intensifying trade and investment relationship. Along with linking UPI, India is also looking to seal a deal for bilateral trade in domestic currency and real-time card recognition.

The currency arrangement is expected to be similar to the one with the UAE by which Indian importers can settle with Indonesian Rupiah while those who are exporting can get paid in Indian rupees.

An Indian official also mentioned that there was a significant interest in India's digital public infrastructure and that Indonesia could be among those that “take one of the bricks from the Indian stacks", after Singapore, UAE and France.

Finance Minister Nirmala Sitharaman also said that India's digital payment system can provide time-tested solutions for digital payment which can assist Indonesia in achieving its financial inclusion goals.

“The areas of cooperation include bilateral investment, financial services and infrastructure development, among others. For instance, India has developed expertise in digital public infrastructure. It can provide time-tested solutions for convenient and affordable digital payments, which can assist Indonesia in achieving it", said Finance Minister Nirmala Sitharaman after meeting her Indonesia counterpart Sri Mulyani Indrawati.