Can India Stack be used for cross-border financial transactions?

India Stack primarily focuses on enhancing digital infrastructure and financial inclusion within India. Its components, such as Aadhaarbased identity and the Unified Payments Interface (UPI), are designed to facilitate domestic transactions and services within the country.

While India Stack primarily caters to domestic financial transactions, the Reserve Bank of India (RBI) has introduced measures to enable crossborder payments through the UPI platform. The RBI has allowed authorized payment system providers to offer UPIbased remittance services for crossborder transactions. This allows individuals in India to send money internationally using UPI, subject to the regulations and guidelines set by the RBI.

However, it's important to note that crossborder financial transactions involve additional considerations such as foreign exchange regulations, compliance with antimoney laundering (AML) and knowyourcustomer (KYC) requirements, and adherence to international standards. These factors are outside the scope of India Stack and are typically governed by separate regulations and frameworks specific to crossborder transactions.

In summary, while India Stack primarily focuses on domestic financial transactions, there are provisions to enable UPIbased crossborder remittances within the regulatory framework established by the RBI.