UPI–KHQR Cross-Border Payments: India–Cambodia QR Connectivity Explained
The Reserve Bank of India has formally rolled out a new payment connectivity framework between India and Cambodia that allows QR-code based cross-border merchant payments using Unified Payments Interface (UPI). Operational from June 02, 2026 in Phnom Penh, this arrangement is a significant step in linking India’s fast payment infrastructure with that of other jurisdictions and advancing the G20 agenda on faster and cheaper cross-border payments.
Under this framework, Indian residents visiting Cambodia can use their existing UPI applications to pay local merchants that are enabled with KHQR, the national QR standard of Cambodia. More than 4.5 million merchants are covered in this ecosystem, offering a real-time, secure, and cashless alternative to currency exchange counters or card-based payments. A reciprocal facility for Cambodian visitors to pay Indian merchants using UPI QR is planned in a subsequent phase.
Background: Policy Push for Cross-Border UPI Integration
Alignment with G20 Roadmap
The initiative is part of a broader policy drive by Reserve Bank of India (RBI) to integrate Unified Payments Interface (UPI) with fast payment systems in other countries. This drive is closely aligned with the G20 Roadmap for enhancing cross-border payments, which emphasises:
- Lower transaction costs
- Faster settlement times
- Improved transparency in pricing and processing
- Wider accessibility to digital payment channels
By enabling interoperable QR-code based Person to Merchant (P2M) transactions between India and Cambodia, the RBI is both supporting this global policy framework and positioning UPI as a competitive cross-border retail payment solution.
Institutional Collaboration
The arrangement launched on June 02, 2026 represents the first phase of collaboration between:
- NPCI International Payments Limited (NIPL) – the international arm of National Payments Corporation of India; and
- Acleda Bank Plc. – a leading Cambodian bank that is a key participant in the KHQR ecosystem.
This collaboration operates under the aegis of:
Reserve Bank of India (RBI); and- National Bank of Cambodia.
The regulators provide the policy and supervisory framework, while NIPL and Acleda Bank Plc. handle the operational and technical integration, compliance with local regulations, settlement processes, and risk management mechanisms.
What the India–Cambodia QR Connectivity Enables
Core Functionality in Phase One
The currently active phase focuses on enabling Indian travellers in Cambodia to make real-time payments to local merchants. The key operational features are:
- Payer side: Indian assessee uses an India-issued UPI application (from a bank or authorised payment service provider).
- Payee side: Cambodian merchant uses a KHQR-enabled acquiring setup.
- Technology: Interoperability between UPI and KHQR, allowing a UPI app to scan and process KHQR codes.
- Transaction type: Person to Merchant (
P2M) QR-code based payments in physical merchant environments.
Once the integration is active, an assessee visiting Cambodia simply scans the merchant’s KHQR code using the UPI application, confirms the amount and authorises the payment. The transaction is completed in real time, with appropriate conversion and settlement handled by the underlying payment systems and partner institutions.
Coverage of Merchants
The system currently supports payments to over 4.5 million merchants in Cambodia that are live on KHQR. These include:
- Retail shops
- Restaurants and hospitality establishments
- Local service providers
- Various small and medium enterprises
This extensive coverage means that a visiting Indian assessee can rely substantially on UPI-based QR payments for on-ground expenses without depending primarily on physical cash or international cards.