NPCI and Bahrain’s BENEFIT Partner for Real-Time UPI Transfers

NPCI International Payments Limited (NIPL) and Bahrain’s leading financial technology and electronic financial transactions company, BENEFIT, have partnered to enable real-time cross-border remittances.

The international arm of the National Payments Corporation of India (NPCI), NPCI International Payments Limited (NIPL), and Bahrain’s leading financial technology and electronic financial transactions company, BENEFIT, have partnered to enable real-time cross-border remittances between India and Bahrain.

This new partnership connects India’s Unified Payments Interface (UPI) with Bahrain’s Electronic Fund Transfer System (EFTS), particularly through the Fawri+ service, allowing users in both countries to send and receive money instantly and securely.

Developed under the guidance of the Reserve Bank of India and the Central Bank of Bahrain, this collaboration marks a significant milestone in strengthening financial connectivity and promoting digital financial inclusion between the two countries. It reflects both sides’ shared vision of enhancing cooperation in the field of financial technology and digital payments.

During Prime Minister Narendra Modi’s state visit to Bahrain in August 2019, a memorandum of understanding was signed between NPCI and BENEFIT. On this basis, the fourth India-Bahrain High Joint Commission meeting held in December 2024 confirmed both sides’ intention to work towards closer cooperation in the fintech and digital payment sector.

UPI’s partnership for real-time cross-border payments

UPI has at least 8 real-time cross-border payment partnerships, including with the United Arab Emirates, Singapore, France, Mauritius, Bhutan, Nepal, Sri Lanka, and Qatar. Several other countries are in the process of integration or are expected to go online soon.

Currently active countries: The United Arab Emirates, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius, and Qatar have established UPI payment linkages.

These partnerships allow both QR-based merchant payments and direct person-to-person (P2P) transfers between linked systems, such as the UPI-PayNow linkage between India and Singapore.

The National Payments Corporation of India (NPCI) is actively working to expand the reach of UPI and plans to include 4–6 more countries in the near future.

Some reports indicate ongoing discussions or integrations with Cyprus and other Southeast Asian countries.

Bahrain

Officially the Kingdom of Bahrain, it is an island country in West Asia. The capital of Bahrain is Manama, and its currency is the Bahraini Dinar (BHD). Manama is the largest city of Bahrain and serves as the country’s financial and cultural center.

Located on the Persian Gulf, it comprises a small archipelago of 50 natural islands and 33 artificial islands, centered around Bahrain Island, which makes up about 83 percent of the country’s landmass. Bahrain lies between Qatar and the northeastern coast of Saudi Arabia, connected by the King Fahd Causeway.

The area now covered by Bahrain was once the site of the ancient Dilmun civilization. It has been famous since ancient times for its pearl fisheries, which were considered the best in the world until the 19th century.

What is Unified Payments Interface (UPI)?

UPI was publicly launched on April 11, 2016, by the National Payments Corporation of India (NPCI). It was launched by RBI Governor Dr. Raghuram G. Rajan.

UPI is a real-time mobile payment system developed by the National Payments Corporation of India (NPCI).

It allows users to link multiple bank accounts in a single app, enabling seamless peer-to-peer (P2P) and merchant transactions.

UPI is based on IMPS (Immediate Payment Service) and is also integrated with Aadhaar-enabled payment services.

BHIM App: Bharat Interface for Money (BHIM) is a UPI-based payment app developed by the National Payments Corporation of India (NPCI).

National Payments Corporation of India (NPCI)

Establishment: NPCI was established by the Reserve Bank of India and the Indian Banks’ Association in 2008 under the Payment and Settlement Systems Act, 2007.

Function: It is a key organization for operating retail payment and settlement systems in India.