In a major boost to India’s digital payment diplomacy, the National Payments Corporation of India (NPCI) signed a Memorandum of Understanding (MoU) with Eurobank of Cyprus to introduce Unified Payments Interface (UPI) services in Cyprus. The agreement, finalized during Prime Minister Narendra Modi’s visit to Cyprus, aims to streamline cross-border transactions, particularly benefiting tourists, businesses, and investors.
Why in News?
The MoU marks a significant milestone in India’s digital outreach and fintech diplomacy, furthering the global acceptance of UPI. It was one of the key economic outcomes from PM Modi’s recent visit to Cyprus, aimed at strengthening bilateral ties, especially in the financial, trade, and digital sectors.
Key Highlights of the MoU
- Parties Involved: NPCI International Payments Ltd. (NIPL) & Eurobank Cyprus.
- Purpose: To introduce UPI-based cross-border payment services in Cyprus.
Benefits
- Enables seamless transactions for Indian tourists and businesses in Cyprus.
- Facilitates bilateral trade payments and financial collaboration.
Strategic Importance
- Cyprus is among the top 10 FDI sources for India with $15 billion in cumulative inflows.
- The partnership aims to make Cyprus a gateway to Europe and the Mediterranean for India’s fintech and digital services.
PM Modi’s Visit Outcomes
- A Business Roundtable co-chaired by Modi and President Nikos Christodoulides in Limassol laid out a roadmap for trade and investment.
- MoU between NSE International Exchange at GIFT City and Cyprus Stock Exchange to boost cross-border capital flow.
Launch of the India-Greece-Cyprus Business and Investment Council to strengthen trilateral cooperation in,
- Shipping and logistics
- Renewable energy
- Civil aviation
- Digital services
Vision for Future
PM Modi emphasized India’s focus on,
- Startups and innovation
- Policy predictability
- Digital infrastructure
- UPI integration symbolizes India’s soft power in digital governance.
| Summary/Static | Details |
| Why in the news? | MoU Signed Between NPCI & Eurobank of Cyprus |
| Purpose | Enable UPI for cross-border transactions |
| Key Benefits | Easier payments for tourists, trade facilitation |
| Trade Value (2023-24) | $137 million |
| FDI Inflows from Cyprus | $15 billion (cumulative) |
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