By India is eager to introduce RuPay services in Sri Lanka, aiming to facilitate smoother transactions for businesses and tourists utilizing the RuPay card. However, negotiations have hit a snag due to the inability of Indian and Sri Lankan banks to reach a consensus on transaction fee payments for RuPay card transactions.
Officials familiar with the matter reveal that the Indian government is proposing to enhance digital payment connectivity with Sri Lanka by launching mutually agreeable RuPay card services. This initiative seeks to expand upon the successful implementation of UPI services in Sri Lanka, which enable mobile-based payments and transaction settlements.
RuPay for Shopping
Despite no active engagements for RuPay technology in Sri Lanka through NIPL (NPCI International Payments Ltd) currently, authorities from both central banks are actively involved in discussions to make this service available in Sri Lanka. The aim is to facilitate the use of RuPay cards for shopping and ATM cash withdrawals in both nations.
Nevertheless, negotiations regarding the introduction of RuPay cards in Sri Lanka are encountering obstacles related to the commissions charged by banks for facilitating digital transactions using branded payment systems. However, sources suggest that these issues are likely to be resolved soon, potentially making Sri Lanka the third country, after Bhutan and Mauritius, to permit both UPI and RuPay transactions.
Inquiries directed to relevant authorities, including the ministry of external affairs, the department of financial services, NPCI, and Sri Lanka’s High Commission, remain unanswered at present.
Currently, RuPay card services are operational in Nepal, Bhutan, Mauritius, Singapore, and the United Arab Emirates.
