India plans to integrate its Unified Payments Interface (UPI) with Malaysia's PayNet, Prime Minister Narendra Modi announced on August 20 during a bilateral meeting with Malaysian Prime Minister Anwar Ibrahim in New Delhi. The collaboration marks a significant step toward enhancing financial connectivity between the two countries.

Speaking at a joint press conference, Modi highlighted that linking UPI with PayNet would facilitate seamless and secure cross-border payments, boosting trade and tourism between India and Malaysia. The move aligns with India's strategy to expand UPI's global reach, following its integration into payment systems in Bhutan, Singapore, the UAE, France, Mauritius, Sri Lanka, and Nepal.

“Efforts will be focused on making this cross-border payment initiative a reality soon, further solidifying the financial ties between our nations”, Modi said. 

UPI has gained prominence for its efficient, real-time digital payment infrastructure, enabling millions of transactions daily. The PayNet collaboration with Malaysia is expected to streamline remittances and payments for Indian expatriates and businesses operating across both countries. 

This development is part of India’s larger ambition to internationalize its digital payment ecosystem and position UPI as a global standard for instant payment systems, paving the way for stronger economic and financial integration with global markets.