India and Bhutan are set to introduce a cross-border remittance service through their postal networks under the planned UPU-UPI initiative.

UPI, or Unified Payments Interface, is India’s real-time payments system that allows money to be sent and received instantly.

The service will link the Universal Postal Union’s PosTransfer system with UPI to support remittances between the two countries.

The initiative was one of the key highlights of a visit by India’s Secretary of Posts to Bhutan during which both sides also signed a memorandum of understanding on postal cooperation.

The agreement sets out a broader framework for collaboration between India Post and Bhutan Post in areas including postal operations, technology, logistics, training and knowledge exchange.

Both sides said the remittance link is expected to improve financial connectivity and widen access to digital remittance services in both countries.

India also said it is ready to share its experience in postal financial services, including how postal networks can support financial inclusion and expand access to savings and other basic financial services.

Featured image credit: Government of India