How NRIs can activate UPI with International Phone Number? Complete Guide

How to Set Up UPI with Your International Mobile Number? (Step-by-Step)

Ready to set up UPI? The process is straightforward once you've completed the prerequisites. Plan for about 15 minutes to complete everything.

Before You Start (Pre-Setup Checklist):

✓ Your NRE or NRO account is active and operational ✓ International number is registered with your bank (call them to confirm) ✓ PAN card is linked to your bank account ✓ You have your debit card handy (you'll need the card number and expiry date) ✓ Your phone can receive SMS and calls on your international number ✓ You've downloaded the India version of your chosen UPI app

Detailed Setup Process:

Step 1: Register Your International Number with Your Bank

This is the most important step and often overlooked. Your bank needs to have your foreign number on file before UPI will work.

For most banks, you'll need to:

• Log into your net banking account
• Navigate to "Profile" or "Contact Information"
• Update your mobile number to your international number (with country code)
• Verify it through OTP sent to that number

Some banks require you to submit a written request. ICICI Bank, for example, asks you to email their NRI services division. IDFC First Bank allows online updates through their app.

Can't update online? You might need to visit a branch if you're in India or contact NRI customer service via email with proper documentation.

Step 2: Download the Right UPI App

Choose your app (PhonePe recommended for ease) and ensure you're downloading the India version.

Android users: Download directly from the Google Play Store while using a VPN set to India, or download the APK from a trusted source.

iOS users: Change your App Store region to India temporarily, download the app, then switch back.

Step 3: Open the App and Start Registration

Launch the app and look for "Get Started" or "Register" button. The app should prompt you to enter your mobile number.

Enter your international number WITH the country code. For example: +1-XXX-XXX-XXXX for US numbers or +971-XX-XXX-XXXX for UAE numbers.

Step 4: Verify Your Number

An OTP (One-Time Password) will be sent to your international number via SMS. This usually arrives within 30 seconds.

Enter the OTP in the app. If you don't receive it:

• Check if your carrier blocks short codes from India
• Wait 2-3 minutes and request resend
• Try SMS instead of call verification
• Contact app customer support

Step 5: Link Your Bank Account

Once verified, the app will show a list of banks. Select your bank (the one where your international number is registered).

The app will automatically fetch your account details using your mobile number. If it shows multiple accounts, select your NRE or NRO account.

Some apps require you to manually enter your account number. Have it ready.

Step 6: Set Your UPI PIN

This is your 4 or 6-digit security PIN for authorizing transactions. Different from your ATM PIN.

The app will ask for:

• Last 6 digits of your debit card
• Expiry date of the card
• An OTP sent to your registered mobile number

Once verified, you'll create your new UPI PIN. Choose something memorable but secure. Don't use obvious combinations like 1234 or your birth year.

Step 7: Test with a Small Transaction

Your UPI is now active. Before celebrating, test it.

Send ₹1 to a family member's UPI ID or phone number. This confirms everything works. If it fails, you'll know immediately and can troubleshoot.

Remember: New UPI IDs have a ₹5,000 transaction limit for the first 24 hours. After 24 hours, it automatically increases to ₹1 lakh per day.

Common First-Time Setup Errors:

• Mobile number not registered with bank: Go back to Step 1. Your bank doesn't have your international number on file yet.
• Bank not supported: Your bank hasn't enabled this feature. Consider opening an account with IDFC First or ICICI.
• Invalid OTP: Check for typos. Ensure SMS isn't delayed. Some international carriers block OTPs from India.
• Debit card verification failed: Verify your card is active for online transactions. Contact your bank if it's blocked.

What Are the Transaction Limits for NRIs Using UPI?

UPI transaction limits for NRIs mirror those for resident Indians, but your bank might impose additional restrictions.

The NPCI standard limits are:

• ₹1 lakh per day (cumulative transaction value)
• Maximum 20 transactions per day
• ₹5,000 limit for first 24 hours on newly created UPI IDs

After your first 24 hours, the limit automatically resets to ₹1 lakh. You don't need to do anything.

Individual banks can set lower limits. For example:

• Some banks cap NRI transactions at ₹50,000 per day
• Others maintain the full ₹1 lakh limit
• A few banks impose monthly caps in addition to daily limits

There's generally no limit on receiving money through UPI. Someone can send you ₹5 lakh, and you'll receive it (though they might need to split it across days based on their limits).

What happens if you exceed the limit? The transaction simply fails with an error message. You'll need to wait until the next day or split the payment.

One important note: These limits apply to UPI transactions only. They don't affect your ability to transfer money through other methods like NEFT, RTGS, or IMPS. If you need to move larger amounts, those channels remain available.

Do NRIs Need to Pay Tax on UPI Transactions?

Here's good news: UPI transactions themselves aren't taxed. The government doesn't charge you for using UPI to send or receive money.

However, what you do with that money and which account it flows through has tax implications.

For NRE Accounts:

NRE accounts are tax-free for the most part. Interest earned on NRE account deposits isn't taxable in India. Money you send from abroad to your NRE account isn't taxed.

If you use UPI linked to your NRE account to pay bills or send money to family, there's no additional tax. The transaction itself is tax-neutral.

For NRO Accounts:

NRO accounts are different. They're taxable in India because they hold income earned within India (like rent, dividends, pension).

Interest earned on NRO accounts is subject to TDS (Tax Deducted at Source) at 30% (plus surcharge and cess). If your PAN isn't linked, TDS jumps to 20% higher under Section 206AA.

UPI transactions from your NRO account aren't taxed separately, but if you're repatriating money abroad later, you'll need to show tax compliance. Learn more about repatriation rules for NRO accounts if you plan to move money overseas.

What About Large UPI Transfers?

All UPI transactions are recorded and traceable by Indian tax authorities. If you're moving large amounts regularly (even if under daily limits), the Income Tax Department can ask for explanations during assessments.

If you're filing taxes in India, you need to report income appropriately. UPI transaction history can be used to verify your declared income. For detailed guidance on tax filing, check out how to file NRI tax returns properly.

Key Tax Reminders:

• Always link your PAN card to avoid higher TDS
• Maintain records of UPI transactions for tax filing
• Consult a chartered accountant if you have significant India-sourced income
• FEMA compliance applies to large fund movements

What Are the Common Issues NRIs Face with UPI?

Even with proper setup, you might encounter problems. Here are the most common issues and their solutions.

Issue 1: OTP Not Received on International Number

This is the top complaint. International carriers sometimes block SMS from Indian short codes.

Solutions:

• Check your SMS spam folder (yes, phones have those now)
• Contact your carrier and ask them to whitelist Indian sender IDs
• Try using a different phone or SIM temporarily
• Use the "call me" option if the app offers it instead of SMS
• Switch to a different UPI app (they use different OTP systems)

Issue 2: Bank Account Not Linking

The app shows your bank but won't link your account.

Reasons:

• International number not updated in bank records
• Bank hasn't enabled the feature yet
• Account type not supported (must be NRE/NRO)
• Account is dormant or has KYC issues

Solutions:

• Call your bank's NRI helpline to confirm number registration
• Update KYC documents if they're outdated
• Activate your account if it's been dormant
• Switch to a bank that definitely supports the feature

Issue 3: App Shows "Not Available in Your Region"

Frustrating, but common with iOS devices.

Reasons:

• You downloaded the wrong version of the app
• Your App Store is set to your current country
• VPN is interfering with app functionality

Solutions:

• Download India-specific version of the app
• Use APK for Android (from trusted sources only)
• For iOS, temporarily change App Store region to India
• Disable VPN during initial setup
• Clear app cache and try again

Issue 4: Transaction Keeps Failing

Your UPI is set up but payments don't go through.

Reasons:

• You're exceeding daily limits (₹5,000 for first 24 hours)
• Insufficient balance in linked account
• Technical issues with UPI network (rare but happens)
• Recipient's UPI ID is incorrect

Solutions:

• Check your account balance first
• Verify transaction limits in app settings
• Wait 24 hours if you're a new user
• Try a smaller amount to test
• Confirm recipient details are correct
• Try during off-peak hours (early morning India time)

Issue 5: UPI PIN Setup Failure

Can't set or reset your UPI PIN.

Reasons:

• Debit card details are incorrect
• Card isn't activated for online transactions
• Bank has additional verification requirements
• System timeout during verification

Solutions:

• Double-check card number and expiry date
• Contact bank to enable online transactions on your card
• Try during Indian business hours
• Use ATM PIN method if app supports it
• Generate UPI PIN through net banking first, then use the app

How Can NRIs Keep Their UPI Secure?

UPI is convenient but also a target for scams. Security should be your top priority.

Essential Security Rules:

Never share your UPI PIN with anyone.

Not family, not friends, definitely not someone claiming to be from your bank. Banks never ask for your PIN. If someone asks, it's a scam.

Be extremely wary of OTP requests.

Real banks and payment apps will never call you asking for OTPs. If you receive an OTP you didn't request, someone is trying to access your account. Don't share it.

Verify merchants before paying. Always check the merchant name displayed on your screen before confirming payment. Scammers create fake QR codes that redirect money to their accounts.

Only scan QR codes from trusted sources.

That random QR code on a flyer? Don't scan it for UPI payment. Verify it's legitimate first.

Additional Protection Measures:

Enable biometric authentication (fingerprint or face unlock) on your UPI app. This adds an extra security layer beyond your PIN.

Set up transaction alerts via email and SMS. Your bank should notify you immediately when money moves. If you see unauthorized transactions, report them within 24 hours.

Use app lock features. Most UPI apps offer password protection or pattern locks. Enable them. This prevents someone who steals your phone from accessing UPI immediately.

Monitor your transaction history weekly. Check for any payments you don't recognize. Small unauthorized amounts are often test transactions before larger frauds.

Update your app regularly. Security patches are included in updates. Running old versions exposes you to known vulnerabilities.

What to Do If Your Account Is Compromised:

1. Immediately block your UPI ID through the app settings
2. Call your bank's fraud helpline (save this number in advance)
3. Report to NPCI through their grievance portal
4. File a police complaint for documentation
5. Change all passwords for banking apps and net banking
6. Monitor your account closely for the next 30 days

Red Flags to Watch For:

• Someone asking you to send ₹1 to "verify" your account
• Messages claiming you've won a prize and need to pay tax via UPI
• Calls from fake "customer care" asking for remote access to your phone
• Requests to scan QR codes to "receive" money (receiving doesn't require QR codes)
• Anyone asking you to install unknown apps for "better UPI service"

According to NPCI's security guidelines, genuine support will never ask for your PIN, OTP, or remote access. If in doubt, hang up and call the official number yourself.

UPI with International Number vs Traditional Remittance: Which is Better?

Now that you can use UPI with your foreign number, should you ditch traditional remittance services entirely? Not necessarily. Each has its place.

Cost Comparison:

UPI: Most transactions are completely free. Some banks charge ₹2-5 for certain types of transfers, but person-to-person payments are typically zero cost. Even if you pay ₹5 per transaction, that's negligible.

Traditional Remittance: Services like Wise, Remitly, Western Union, or bank wire transfers charge 1-5% in fees, depending on the amount and speed. On $1,000, that's $10-50 in fees. If you're sending money from USA to India regularly, those fees add up quickly.

Speed Comparison:

UPI: Instant. Your transaction completes in 5-10 seconds. The recipient sees the money immediately. Perfect for emergencies.

Traditional Remittance: Ranges from 1 hour (for premium services) to 3-5 business days (for bank transfers). Even "instant" services can take 30 minutes to process.

Convenience Comparison:

UPI: You need an Indian bank account, and you're limited to ₹1 lakh per day. Setup takes some effort initially.

Traditional Remittance: No Indian account needed. You can send to anyone's account. Higher limits (often $10,000+ per transaction). But requires creating accounts on remittance platforms.

When to Use UPI:

• Daily household expenses (grocery bills, utility payments)
• Regular family support (monthly allowances under ₹1 lakh)
• Emergency money (someone needs cash immediately)
• Small frequent payments (school fees installments, rent)
• Bill splitting (you owe someone money quickly)

When to Use Traditional Remittance:

• Large property transactions (buying flat, land)
• Major investments (mutual funds, stocks, business)
• Amounts exceeding ₹1 lakh (UPI's daily limit)
• When you don't have NRE/NRO account (temporary situations)
• Tax-saving transfers (some remittances qualify for different tax treatment)

Can You Use Both?

Absolutely, and you probably should. Most financially savvy NRIs maintain both options.

Use UPI for regular, small transactions. Use traditional remittance for large, occasional transfers. This strategy minimizes fees while maintaining flexibility.

For example, send your parents ₹50,000 monthly via UPI (free). When you need to invest ₹10 lakh in property, use a remittance service that can handle large amounts with proper documentation.

What If Your Bank Doesn't Support International Numbers Yet?

Not every bank has implemented this feature. If yours hasn't, you have several options while you wait.

Option 1: Keep Your Indian Number Active

Many NRIs maintain Indian mobile numbers specifically for banking and UPI. It's not ideal, but it works.

Physical SIM approach: Keep your Indian SIM card. Insert it when you need to receive OTPs. If you travel to India occasionally, recharge it then to keep it active.

eSIM approach: Services like Airtel, Jio, and Vi offer eSIM conversions. Your phone (if compatible) can hold multiple eSIMs. Keep your Indian number active digitally without physically swapping SIM cards.

Cost consideration: Maintaining an Indian number costs ₹100-300 per month depending on the plan. Annual prepaid plans can reduce this to ₹1,000-1,500 per year.

Option 2: Open a New Account with a Supported Bank

If you're serious about using UPI with your international number, opening a second NRE or NRO account might make sense.

IDFC First Bank and ICICI Bank both allow NRIs to open accounts digitally if you're not in India. The process takes 5-7 days typically.

Transfer a working balance (say ₹50,000-1 lakh) to this new account and use it specifically for UPI transactions. Keep your primary NRI account at your current bank for savings and investments.

This dual-account strategy gives you UPI access while you wait for your primary bank to implement the feature.

Option 3: Wait for Your Bank's Implementation

If you're patient and not in a rush, waiting might be the simplest option.

Contact your bank's NRI customer service and ask:

• Are they planning to enable international number UPI?
• What's the expected timeline?
• Can you be notified when it launches?

Most major banks are working on this. It's a matter of time, not if, but when.

Option 4: Temporary Family Access (Not Recommended)

Some NRIs ask family members to handle UPI payments on their behalf. While this works in emergencies, it's not a long-term solution.

Problems with this approach:

• You lose control over your money
• Transaction limits apply to your family member's account
• Privacy concerns (they see all your transactions)
• Complications if relationships change
• Potential tax implications if large amounts move through someone else's account

Use this only for genuine emergencies, not as a regular practice.