Published: 18 February 2026Business StandardEconomy
NPCI International-PayNet Malaysia Agreement for UPI-DuitNow Cross-Border Payments
NPCI International Payments Limited (NIPL) signed an agreement with Malaysia's Payments Network (PayNet) to enable cross-border QR-based merchant payments linking India's UPI with Malaysia's DuitNow system. The agreement was announced in mid-February 2026.
Phase I allows Indian travellers in Malaysia to scan DuitNow QR codes using UPI apps at millions of merchant touchpoints. Phase II will enable Malaysians visiting India to scan UPI QR codes using DuitNow apps. Beyond merchant payments, the linkage will support low-cost cross-border remittances benefiting students, small businesses, and individuals transacting between the two countries. This expands India's international UPI footprint after similar linkages with Singapore (PayNow), UAE (NIOPAY), France, and Sri Lanka.
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Q: Examine the significance of the NPCI International-PayNet agreement linking UPI with DuitNow for expanding India's cross-border digital payment footprint.
Answer (50 words):
NPCI International and Malaysia's PayNet signed an agreement in mid-February 2026 linking India's UPI with Malaysia's DuitNow for cross-border QR merchant payments. Phase I enables Indian travellers in Malaysia; Phase II covers Malaysians visiting India. This extends India's international UPI footprint after Singapore PayNow, UAE NIOPAY, France, and Sri Lanka linkages.
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NPCI International signed an agreement with which country's payments network to enable cross-border QR-based merchant payments linking UPI with that country's payment system?
Explanation · Correct answer CNPCI International Payments Limited (NIPL) signed an agreement with Malaysia's Payments Network (PayNet) to link India's UPI with Malaysia's DuitNow system for cross-border QR-based merchant payments.
Frequently asked questions
What agreement did NPCI International sign with Malaysia in February 2026?
**NPCI International Payments Limited (NIPL)** signed an agreement with **Malaysia's Payments Network (PayNet)** to enable **cross-border QR-based merchant payments** linking **India's UPI** with **Malaysia's DuitNow** system.
How does the UPI-DuitNow cross-border payment work?
Under Phase I, **Indian travellers in Malaysia** can scan **DuitNow QR codes** using their UPI apps at merchant touchpoints. Under Phase II, **Malaysians visiting India** can scan **UPI QR codes** using DuitNow apps. Both phases enable seamless cross-border merchant payments without currency conversion hassles.
What is DuitNow and who operates it?
**DuitNow** is Malaysia's **instant payment and QR payment system**, operated by **Payments Network Malaysia (PayNet)**. It is Malaysia's equivalent of India's UPI — enabling real-time bank transfers, QR merchant payments, and request-to-pay functionality.
What is the strategic significance of UPI-DuitNow linkage for India?
The UPI-DuitNow linkage is part of India's strategy to **internationalise UPI** and build the **India Stack** global digital infrastructure. With Malaysia having a large Indian diaspora (of Tamil-origin), this linkage facilitates **remittances and travel payments** for the Indian community in Malaysia.
How many countries has India linked UPI with for cross-border payments?
India has linked UPI for cross-border payments with several countries including **Singapore (UPI-PayNow)**, **UAE (UPI-Aani)**, **Bhutan, Nepal, Sri Lanka**, and now **Malaysia (UPI-DuitNow)**. NPCI International manages these bilateral payment infrastructure agreements to expand UPI globally.
