Bhutanese Citizens Now Able to Make UPI Payments in India Following PM Modi’s Visit

New Era of Digital Cooperation Between India and Bhutan Heralded with Launch of UPI Payments for Bhutanese Nationals

Rajesh Sharma, KalimNews, Jaigaon, November 13, 2025 : A significant leap in Indo-Bhutan digital cooperation was marked during Prime Minister Narendra Modi's two-day state visit to Bhutan, which concluded on November 12. Prime Minister Modi made a landmark announcement: Bhutanese citizens can now make seamless payments in India using the Unified Payments Interface (UPI) by scanning Indian QR codes directly from their bank accounts. This move opens up new opportunities for digital integration between the two countries, offering Bhutanese nationals the same digital convenience Indian tourists have enjoyed while visiting Bhutan.

During the visit, PM Modi stated, “Today, we have opened a new chapter of digital friendship. Bhutanese citizens can now make seamless payments in India using UPI. This is not just about technology; it’s about trust and partnership.” The announcement, which marks the second phase of Indo-Bhutan digital payment integration, follows a Memorandum of Understanding (MoU) signed in 2022 between the National Payments Corporation of India (NPCI) and Bhutan’s Royal Monetary Authority (RMA).

Previously, Indian tourists visiting Bhutan could use popular digital payment apps such as Google Pay, PhonePe, and Paytm to make payments by scanning local QR codes. With the latest development, Bhutanese citizens traveling to India will be able to use the same apps and methods for digital transactions. This new facility aims to further streamline and enhance the cross-border financial interactions between the two nations.

In addition to the announcement about UPI payments, PM Modi and Bhutan’s King Jigme Khesar Namgyel Wangchuck jointly launched Bhutan’s new series of 100, 500, and 1,000 Ngultrum banknotes. These new notes, according to PM Modi, are “a reflection of Bhutan’s self-reliance, stability, and confidence in its bright future.” The prime minister also highlighted the strong India-Bhutan partnership, noting its contributions to the youth of both nations. “Our young people are the bridge to innovation; from satellites to startups, they are shaping the digital destiny of our region,” PM Modi remarked.

The prime minister also recalled India’s financial support to Bhutan’s development, including a Rs 10,000-crore assistance package aimed at funding key sectors such as roads, agriculture, healthcare, and finance as part of Bhutan’s Five-Year Plan. Bhutan’s King, in turn, expressed gratitude for India’s continued support, noting how the friendship between the two nations had evolved beyond tradition to encompass shared innovation and technological progress.

This partnership has been developing steadily since 2021 when Bhutan became the first country to adopt the UPI standard for online payments. Bhutanese citizens and visitors to the country have already been using UPI-based apps to make payments, and now India is extending the same facility for Bhutanese nationals traveling to India. The new UPI system will also enable smoother financial exchanges for more than 200,000 Indian tourists who visit Bhutan annually.

NPCI International Payments Ltd (NIPL), the international arm of the NPCI, and the Royal Monetary Authority (RMA) of Bhutan have partnered to ensure this new payment system works seamlessly. Bhutan will become the second country after Singapore to accept BHIM UPI at select merchant locations. NPCI stated that RMA will ensure that UPI QR transactions are accepted at all merchants in Bhutan who are RMA-acquired.

In addition to UPI, Bhutan’s collaboration with India has further solidified with the acceptance of RuPay cards. Bhutan became the first country outside India to issue and accept RuPay cards in 2020, enabling Bhutanese citizens to use their RuPay cards in India while Indian travelers can seamlessly make payments in Bhutan. This expanded collaboration is expected to provide residents of Bhutan with more options for cashless payments and will contribute to Bhutan’s transition toward a more digital economy.

The launch of UPI payments for Bhutanese citizens is also expected to boost economic integration and ease trade between the two countries. For Indian tourists, the ability to use UPI-based apps like Google Pay, PhonePe, Paytm, and Amazon Pay in Bhutan is a game-changer. In 2021, the BHIM UPI app was launched to promote efficient, cashless payments for Indian tourists visiting Bhutan and to enhance transparency in transactions.

Meanwhile, NIPL, a subsidiary of NPCI, has been instrumental in taking RuPay and UPI to global markets. With Bhutan’s collaboration, NIPL’s global presence is poised to expand, offering Indian travelers a secure and familiar payment system abroad and helping other nations adopt similar real-time payment technologies.

In summary, this latest phase of digital integration between India and Bhutan, spearheaded by Prime Minister Modi's visit, highlights the growing importance of cross-border digital payments in the region and sets the stage for even closer ties in the future. As the two nations continue to innovate together, the next steps will likely focus on expanding the use of UPI and other digital services, providing mutual benefits for both countries’ economies and citizens.