India-Cyprus Sign MoU to Enable UPI Services for Cross-Border Payments

Current Context: On June 16, 2025, the National Payments Corporation of India (NPCI), through its arm NPCI International Payments Ltd. (NIPL), signed an MoU with Eurobank Cyprus in Limassol, Cyprus, during a business roundtable co-chaired by PM Narendra Modi and President Nikos Christodoulides.

Aim

• To enable Unified Payments Interface (UPI) services in Cyprus for seamless cross-border payments, benefiting tourists, businesses, and the Indian diaspora.

Highlights

• Cyprus became the second European country after France to adopt UPI-based remittance services
• Supports real-time, low-cost transactions and simplifies remittances from Cyprus to India
• Part of India’s fintech diplomacy, enhancing digital financial connectivity
• Cyprus is among India’s top 10 FDI sources, with $15 billion in cumulative inflows
• The MoU positions Cyprus as a gateway to Europe and the Mediterranean for Indian fintech solutions.

Question:

Q.1 After which European country did Cyprus become the second to adopt UPI-based remittance services?
a) Germany
b) Spain
c) France
d) Italy

Answer: c) France was the first European country to adopt UPI-based remittance services. Cyprus followed, becoming the second European nation in this fintech partnership.