Prime Minister Narendra Modi officially announced the entry of India’s Unified Payments Interface (UPI) into the Malaysian market on February 7, 2026. During his address to the Indian community in Kuala Lumpur, he stated that the payment system will be available soon. This initiative connects India’s digital payment infrastructure with Malaysia’s local network to facilitate easy transactions for travelers and professionals.
How will the payment system work for Indians?
The new system links India’s UPI with Malaysia’s PayNet, which operates the DuitNow QR network. This interoperability means Indian visitors can use their existing mobile apps like PhonePe, Google Pay, or BHIM to make payments abroad. You simply need to scan the merchant’s QR code in Malaysia to complete the transaction. While the exact launch date for general users is pending, the formal agreement between NPCI and PayNet was scheduled during this official visit.
What are the charges and other key updates?
According to the latest budget guidelines, UPI transactions remain free for users, though a foreign exchange markup will apply during currency conversion from INR to Malaysian Ringgit. Merchants in Malaysia will receive payments in their local currency. Beyond fintech, PM Modi also announced the opening of a new Indian Consulate and established Thiruvalluvar Scholarships for students. Additionally, eligibility for Overseas Citizenship of India (OCI) cards has been extended to the sixth generation for Malaysian citizens of Indian origin.
