India & Cyprus Sign MoU to Launch UPI-Based Cross-Border Payment System.

In June 2025, India and Cyprus signed a strategic MoU to integrate Unified Payments Interface (UPI) for cross-border remittances. The agreement aims to simplify payments for Indian and Cypriot users, strengthening bilateral trade and enhancing financial inclusion using India’s fast-growing digital payments infrastructure.

      - National Payments Corporation of India’s international arm (NPCI International Payments Ltd) inked the MoU with Cyprus’ fintech regulators. This collaboration paves the way for seamless, real-time UPI transactions between the two nations, mirroring earlier agreements with Greece and Singapore.

      - UPI, launched in 2016, had already processed billions of domestic transactions. Its expansion to Cyprus aligns with India’s Payments Vision 2025, RBI and NPCI goals to replicate low-cost, real-time remittance systems internationally, giving alternatives to card networks and SWIFT.

      - Once operational, the UPI-Cyprus payment system will enable instant and low-cost remittances for NRIs and Indian students living in Cyprus, reducing reliance on costly wire transfers. It will also empower small and medium enterprises (SMEs) engaged in bilateral trade by providing them with a fast and efficient payment channel. Additionally, Cypriot users will gain access to UPI-based platforms to directly pay Indian service providers for tourism, education, and IT services. This initiative is expected to democratize cross-border financial flows and minimize dependency on traditional banking rails like SWIFT and card networks.

Main Point :-   (i) The platform will function via bank QR codes and mobile apps, connected through NPCI and Cyprus’ Central Bank. Key features include auto-litigation systems, settlement networks, and compliance with Anti-Money-Laundering (AML) and FATF “travel rule” regulations.

      (ii) India already has UPI-based networks with France, Singapore, UAE, and Greece; Cyprus becomes another strategic partner in Europe. This positions India as a leader in shaping next-gen cross-border payment infrastructure beyond conventional networks.

(iii) Phased implementation is expected to begin by late 2025. First, travel-related remittances—like student tuition and tourist payments—will be enabled, followed by merchant and business flows. The scale-up will depend on regulatory harmonization and integration with Cyprus’ financial ecosystem.
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