Mumbai: India and Israel have agreed to deepen their financial and digital cooperation by enabling cross-border use of the Unified Payments Interface (UPI). The announcement was made in Tel Aviv on Thursday during the second and final day of Prime Minister Narendra Modi’s visit to Israel.
Under the agreement, India’s UPI will be connected with Israel’s domestic payment system. This will allow smoother and quicker digital transactions between the two countries. The move is expected to make payments more affordable by reducing transaction costs and cutting settlement time.
Big Boost For Businesses And Consumers
Prime Minister Modi expressed satisfaction over the agreement, saying he was pleased that a deal had been reached to enable the use of UPI in Israel. He said the two countries have also decided to establish a Critical and Emerging Technologies Partnership, which will boost cooperation in areas like artificial intelligence, quantum technology and critical minerals.
With UPI linking to Israel’s system, businesses in both countries are expected to benefit from easier cross-border payments. Faster and cheaper transactions could improve trade, tourism and business exchanges.
The Prime Minister also said that India and Israel will expand cooperation in civil nuclear energy, space and agriculture. He added that both sides will work together to develop future-ready farming solutions and create 'villages of excellence'.
UPI’s Growing Global Presence
The Unified Payments Interface (UPI) has already proved to be a successful digital payment system. It is currently operational in more than eight countries, including the United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar.
An independent study commissioned by India’s Finance Ministry found that UPI accounts for 57 per cent of total payment transactions in India. In comparison, cash transactions stand at 38 per cent. Many users prefer UPI because it is easy to use and allows instant fund transfers.
The study also showed that 65 per cent of UPI users make multiple digital payments every day. Among young people aged 18 to 25, adoption is even higher at 66 per cent, showing a strong shift toward digital payments.
