India and France have agreed to use Unified Payments Interface (UPI) payment mechanism which will begin from the iconic Eiffel Tower, Prime Minister Narendra Modi announced on Thursday. He said Indian tourists in France will now be able to make payments in rupees.

Addressing the Indian community at La Seine Musicale in Paris, PM Modi said, "Be it India's UPI or other digital platforms, they have brought a huge social transformation in the country and I am happy that India and France are also working together in direction."

"India and France have agreed to use UPI in France. I will leave after the agreement. However, it is your job to move forward. Friends, in the coming days its beginning will be made from Eiffel Tower which means that Indian tourists will now be able to make payments in Rupees, through UPI, at Eiffel Tower," the Prime Minister said.

The announcement is seen as a significant development for bilateral trade and tourism between India and France. PM Modi also stated that the two countries are working on archaeological missions for a long time.

"Very few people know that India and France are working on archaeological missions for a long time. It's expanded from Chandigarh to Ladakh. Digital infrastructure is another sector that strengthens the ties between India and France," PM Modi said.

India and France are tackling many challenges of the 21st century. Therefore, at this crucial time, the importance of the strategic partnership between our countries has increased even more," he added.

The Prime Minister, who arrived in Paris on Thursday on a two-day official visit, was accorded a ceremonial welcome at the airport. He was welcomed by French Prime Minister Elisabeth Borne at the airport.

Unified Payments Interface (UPI) is India's mobile-based payment system and allows people to make round-the-clock payments through a virtual payment address created by the customer.

UPI and Singapore's 'PayNow' signed an agreement facilitating users in either country to make cross-border transactions earlier this year.