Context:

• NPCI International Payments Limited (NIPL), the international arm of the National Payments Corporation of India (NPCI), has partnered with ACLEDA Bank to launch the Unified Payments Interface (UPI) in Cambodia.

Key Highlights:

• Phase 1: Indian travelers can make payments directly through UPI apps (such as BHIM, Google Pay, and PhonePe) at over 4.5 million merchant outlets in Cambodia using the country's national QR system, KHQR (Bakong Network).
• Phase 2: The corridor will become fully bi-directional (two-way). Cambodian citizens visiting India will be able to make payments by scanning Indian UPI QR codes using their local banking applications.
• Role of Central Banks: The initiative is being implemented under the joint supervision of the National Bank of Cambodia (NBC) and the Reserve Bank of India (RBI).
• Cambodia has become the 9th country to accept UPI payments.
• Other Countries: Singapore, United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, and Sri Lanka.

Unified Payments Interface (UPI)

• Launched: 11 April 2016 by then RBI Governor Raghuram Rajan
• Developed by: National Payments Corporation of India (NPCI)
• Regulator: Reserve Bank of India (RBI)
• Objective: To facilitate instant, secure, and integrated banking transactions through mobile platforms.
• Transaction Types: Person-to-Person (P2P) and Person-to-Merchant (P2M)
• Nature of Transactions: 24×7 instant fund transfer (inter-bank transfer) and QR code-based payments.
• Key Feature: Payments can be made using only a Virtual Payment Address (VPA) or mobile number.
• Popular UPI Apps: PhonePe, Google Pay, Paytm, BHIM, Amazon Pay, etc.
• BHIM App: Government-backed UPI application developed by NPCI (launched on 30 December 2016).

National Payments Corporation of India (NPCI)

• Established: 2008
• Founded by: Reserve Bank of India (RBI) and Indian Banks' Association (IBA)
• Headquarters: Mumbai
• Type: Not-for-Profit Organization
• Objective: Development and operation of India's retail digital payment systems.
• Legal Status: Registered as a Section 8 company under the Companies Act, 2013.
• Governing Law: Established under the Payment and Settlement Systems Act, 2007.

Major Payment Systems Operated by NPCI:

• UPI (Unified Payments Interface)
• RuPay Card
• IMPS (Immediate Payment Service)
• BHIM App
• AePS (Aadhaar Enabled Payment System)
• NACH (National Automated Clearing House)
• FASTag
• BBPS (Bharat Bill Payment System)

ACLEDA Bank :

• Largest domestic commercial bank in Cambodia.
• Established: 1993 (as a project of the International Labour Organization - ILO)
• Headquarters: Phnom Penh
• Full Form of ACLEDA: Association of Cambodian Local Economic Development Agencies
• Currency of Cambodia: Cambodian Riel

Cambodia :

• A historically significant country located in Southeast Asia.
• India and Cambodia share centuries-old cultural and civilizational ties.

Bordering Countries:

• North and West – Thailand
• North and East – Laos
• East and Southeast – Vietnam
• Maritime Boundary: The Gulf of Thailand lies to its southwest.
• Major River: The Mekong River flows through the country and serves as its lifeline.
• Major Lake:Tonlé Sap is the largest freshwater lake in Southeast Asia.
• Capital:Phnom Penh – the country's largest city situated on the banks of the Mekong River.
• Head of State:Norodom Sihamoni (King)

Angkor Wat:

• Angkor Wat is the world's largest religious monument.
• Built in the 12th century by King Suryavarman II.
• Originally a Hindu temple dedicated to Lord Vishnu and later transformed into a Buddhist temple.
• Archaeological Cooperation: Archaeological Survey of India (ASI) is actively involved in the conservation and restoration of Angkor Wat and Ta Prohm temples.
• Ancient Names: Funan, Kampuchea
• Independence:Gained independence from France in 1953.
• Dark Chapter (Khmer Rouge): During the 1970s, Cambodia witnessed a devastating genocide under the Khmer Rouge regime led by Pol Pot, resulting in the deaths of millions of people.