NPCI partners with HSBC India to enable real-time FX settlement for cross-border UPI payments
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The National Payments Corporation of India (NPCI) on Wednesday announced a strategic partnership with HSBC India to introduce real-time foreign exchange (FX) settlement for cross-border UPI transactions, a move aimed at making international payments more seamless and transparent for Indian travellers.
The collaboration comes as UPI continues to expand globally and is currently operational across nine countries—Singapore, the United Arab Emirates, Nepal, Bhutan, Mauritius, France, Sri Lanka, Qatar, and Cambodia—allowing Indian users to make QR code-based payments directly from their Indian bank accounts in Indian Rupees (INR).
With the latest partnership, HSBC India will act as the banking partner and provide real-time foreign exchange rates through direct API integration. This will enable users making purchases overseas to view the exact INR amount payable at the point of transaction, bringing greater clarity and predictability to international spending.
What's the deal?
The arrangement will also allow overseas merchants and financial institutions to receive payments in their local currencies while streamlining the end-to-end settlement process.
An NPCI spokesperson said the collaboration marks an important step toward enabling efficient forex conversion and real-time settlement for cross-border transactions while improving transparency for users.
“Our collaboration with HSBC represents an important step toward enabling efficient forex conversion and real-time settlement for cross-border transactions, delivering transparent payment experiences for users. This partnership will further enhance the convenience of international payments while supporting the growing global acceptance of India’s digital public infrastructure,” the spokesperson said.
API-enabled infrastructure
According to NPCI, the API-enabled infrastructure, backed by HSBC India’s global payments capabilities and international network, will support secure 24x7 cross-border transactions.
The initiative is expected to make international UPI payments faster, more transparent and more convenient for users and ecosystem participants, while strengthening the global reach of India’s digital payments infrastructure.
NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association, is an umbrella organisation for operating retail payments and settlement systems in India (IBA). It runs the UPI used for real-time payments between peers or at merchants' end while making purchases.