India And Malaysia Launch Cross-Border UPI-PayNet Link

Digital Collaboration Platform  
The partnership is part of the newly established Malaysia–India Digital Council, which will serve as a hub for cooperation in technology, digital trade, and innovation. By linking UPI and PayNet, both nations are set to deepen financial integration and reduce reliance on costly remittance channels.  

Economic And Social Impact  
With nearly half of the world’s real-time digital transactions already happening in India via UPI, the expansion into Malaysia is expected to benefit millions of users, including the large Indian diaspora. The move will also support rupee–ringgit trade settlements, strengthening bilateral commerce and boosting digital financial inclusion.  

Future Outlook  
Beyond payments, the collaboration will extend to areas such as semiconductors, energy, food security, and defense. The UPI-PayNet link is seen as a model for other nations in the Global South to adopt interoperable digital payment systems.  

Key Highlights  

• India and Malaysia launch UPI-PayNet cross-border payments  
• Malaysia–India Digital Council established for tech cooperation  
• Rupee–ringgit trade settlement to deepen commerce  
• UPI expansion benefits diaspora and businesses  
• Model for interoperable payments in the Global South  

Conclusion  
The UPI-PayNet linkage marks a significant step in India’s digital diplomacy, positioning both nations as leaders in cross-border fintech innovation. By making payments faster and cheaper, the partnership is set to transform trade and everyday transactions between India and Malaysia.  

Sources: Moneycontrol, The Star, Economic Times