New Delhi: Prime Minister Narendra Modi announced on Tuesday that India plans to integrate its unified payments interface (UPI) with Malaysia’s national payments network PayNet. This integration is expected to boost digital payments and economic ties between the two countries.
During a bilateral meeting with Malaysian Prime Minister Anwar Ibrahim, Modi also proposed the establishment of an India-Malaysia startup alliance to foster collaboration between the tech companies of both nations.
The two leaders discussed enhancing cooperation in various areas, including semiconductors, fintech, defense, AI, and quantum computing. They also signed several Memoranda of Understanding (MoUs) on technology, digital payments, and startups.
The International Financial Centre Services Authority (IFSCA) and Labuan Financial Services Authority signed an agreement to promote mutual cooperation in the financial services sector.
Both Prime Ministers welcomed the signing of the MoU on digital technologies and encouraged the early convening of the Malaysia-India Digital Council to guide engagement in the digital realm. The council will focus on areas such as digital public infrastructure, digital B2B partnerships, digital capacity building, cybersecurity, and emerging technologies like 5G, quantum computing, cloud computing, and the Internet of Things.
The India-Malaysia Startup Alliance aims to connect startups from both countries and facilitate collaboration.
The announcement comes as UPI continues its global expansion. India has recently signed agreements with the Maldives and Qatar to roll out UPI in these countries. Additionally, NPCI International Payments Limited (NIPL) has partnered with Qatar National Bank and Network International to launch UPI services in the Middle East.
Domestically, UPI transactions have been on a steady rise, with over 1.4 billion transactions valued at INR 20.64 lakh crore recorded in July.
