Fintech Brief — June 05, 2026

1. UPI Goes Live in Cambodia — India’s Cross-Border Payments Network Expands to 9th Country

NPCI International Payments Limited (NIPL) launched cross-border UPI payments in Cambodia on June 3, enabling Indian travellers to pay at over 4.5 million KHQR merchant outlets using any UPI-enabled app. The linkage was established in partnership with ACLEDA Bank Plc, under the supervision of both the Reserve Bank of India and the National Bank of Cambodia.

Cambodia joins Singapore, UAE, France, Sri Lanka, Bhutan, Nepal, Mauritius, and Qatar in UPI’s international merchant acceptance network. A subsequent phase will enable Cambodian travellers to pay at UPI QR-enabled merchants across India.

UPI cross-border transactions nearly doubled to 1.48 million in FY2025-26, worth ₹330.43 crore, up from 0.75 million transactions worth ₹258.53 crore in FY2024-25. The rapid expansion underscores India’s push to make UPI a global digital payments standard.

Source: Business Standard | ClearingPost

2. Former RBI Governor Calls for “Hawkish Hold” Ahead of June Policy Meeting

Former RBI governor Duvvuri Subbarao has urged the central bank to maintain a “hawkish hold” at its upcoming June monetary policy meeting, emphasising that an interest rate hike should be the “last, last, last resort” to defend the rupee’s exchange rate. Subbarao outlined RBI’s policy trilemma — balancing growth, rupee stability, and inflation — noting that the rupee remains one of Asia’s worst-performing currencies this year.

With global supply chain pressures mounting due to geopolitical tensions and elevated oil prices, the RBI faces a tough call between supporting economic growth and maintaining currency stability. The commentary comes ahead of the June 6-8 MPC meeting.

Source: CNBC

3. India Gold ETFs See First Monthly Outflow in a Year After Import Duty Hike

India’s physically backed gold ETFs recorded their first net monthly outflow in a year in May, with $61 million (0.4 metric tons) exiting as investors booked profits following a sharp price surge triggered by the government’s decision to raise import duties on gold and silver from 6% to 15% on May 13.

Domestic gold prices surged to ₹164,497 per 10 grams — their highest level in over two months. The outflow reduced total gold ETF holdings to 116.3 tons, though net inflows for the year so far remain robust at $3.48 billion.

The duty hike was designed to curb gold imports and ease pressure on India’s foreign exchange reserves. The reduced ETF demand could further dampen import volumes, potentially helping narrow the trade deficit and support the weakening rupee.

Source: Reuters via Kitco | Hindu Business Line

4. Coinbase Expands INR Services in India — Crypto On-Ramp Gets Easier

Global crypto exchange Coinbase has introduced direct INR deposits and withdrawals for Indian users, a significant expansion that signals growing regulatory comfort with crypto-fiat integration in the country. FIU-registered Indian exchanges like KoinBX (serving 1.5 million users) have welcomed the move, viewing it as a positive indicator of India’s growing importance in the global digital asset ecosystem.

The development marks a full-circle moment — Coinbase’s previous attempt to launch UPI-based INR transfers in India in 2022 was short-lived after the NPCI clarified it was not on its approved list. The new direct INR integration suggests the regulatory landscape for crypto-to-fiat flows has matured considerably since then.

Source: Business Insider