India and Bhutan have taken another significant step in strengthening their digital and economic partnership with the launch of the second phase of international UPI, enabling Bhutanese citizens visiting India to make seamless digital payments. External Affairs Minister S. Jaishankar announced the rollout in Thimphu, alongside Bhutanese Prime Minister Tshering Tobgay and Foreign Minister D. N. Dhungyel.
The new phase completes two‑way UPI connectivity between the neighbours: Bhutanese visitors can now pay in India using UPI, while UPI has already been operational within Bhutan for local transactions. Jaishankar described the development as a milestone in India’s commitment to Bhutan’s progress and prosperity, reaffirming the countries’ long‑standing partnership.
Jaishankar arrived in Bhutan on a two‑day official visit, during which he conveyed warm greetings from Prime Minister Narendra Modi and emphasised the “unique ties of friendship and cooperation” between the nations. As part of the visit, India also handed over 54 Made‑in‑India electric vehicles to Bhutan — a gesture aimed at supporting Bhutan’s sustainability goals and deepening economic collaboration.
The UPI expansion is expected to benefit Bhutanese tourists, students, and business travellers, making cross‑border payments faster, cheaper, and more secure. It also aligns with India’s broader strategy of promoting digital public infrastructure across the region, positioning UPI as a model for interoperable, real‑time payments.