India and Bahrain Just Revolutionized Cross-Border Payments—Here’s How

India and Bahrain have taken a groundbreaking step in digital payments by launching real-time cross-border remittance services between the two nations. The partnership connects India’s Unified Payments Interface (UPI) with Bahrain’s Fawri+ service, making instant money transfers possible between Indian and Bahraini bank accounts. The initiative is spearheaded by NPCI International Payments Limited (NIPL) and Bahrain’s leading fintech firm, BENEFIT, under the guidance of the Reserve Bank of India (RBI) and the Central Bank of Bahrain (CBB). It marks a significant advancement in India’s strategy to internationalize UPI and deepen fintech ties with Gulf nations.

Revolutionizing Cross-Border Transfers

This deal allows users in India and Bahrain to send and receive money instantly through their domestic digital platforms—UPI and Fawri+. Previously, such transfers were slow and involved high fees. Now, users will enjoy faster, cheaper, and more secure remittances, helping families and businesses operate across borders seamlessly.

A Boost for the Indian Diaspora in Bahrain

Bahrain is home to a large Indian expatriate population, constituting nearly 30% of the country’s residents. With this UPI-Fawri+ connection, thousands of Indian workers can now transfer money home in real-time, without needing to rely on traditional banking systems or third-party remittance apps.

Background: A Growing Digital Partnership

The digital cooperation between India and Bahrain has been evolving steadily,

• In August 2019, during PM Modi’s visit to Bahrain, a Memorandum of Understanding (MoU) was signed between NPCI and BENEFIT to enhance payment linkages.
• The 4th India-Bahrain High Joint Commission Meeting in December 2024 reaffirmed the commitment to deepening fintech collaboration.
• In early 2025, senior Indian diplomats met with top Bahraini officials to finalize the framework for the current payment system linkage.

Key Features of the UPI–Fawri+ Integration

• 1. Real-Time Money Transfers: Users can now complete cross-border transfers in seconds, providing unmatched convenience.
• 2. Regulatory Confidence: The system is fully supervised by the RBI and CBB, ensuring robust legal and financial safeguards.
• 3. User-Centric Technology: Both UPI and Fawri+ operate through mobile apps and QR codes, enabling easy access for users without technical know-how.
• 4. Fintech Diplomacy in Action: This is another example of India using financial technology as a diplomatic tool, promoting seamless people-to-people and business ties.

Economic Significance of Payment Corridor

Strong Bilateral Ties

• In FY 2024–25, trade between India and Bahrain stood at USD 1.64 billion, while total mutual investments have crossed USD 2 billion.
• With easier payment systems in place, businesses—especially small exporters and importers—can settle transactions quicker, reducing time and cost bottlenecks.

Supporting Digital Financial Inclusion

• This initiative helps bring more people into the formal financial system, especially migrant workers who often rely on informal money transfer methods.

Static Facts

• UPI (Unified Payments Interface): Launched by NPCI in 2016
• NIPL: International arm of NPCI, established in 2020
• BENEFIT: Bahrain’s primary electronic payment network, founded in 1997
• Fawri+: Real-time fund transfer service under Bahrain’s EFTS
• Indian diaspora in Bahrain: Approx. 30% of Bahrain’s total population
• India-Bahrain trade: USD 1.64 billion in FY 2024–25
• Mutual investments: Above USD 2 billion