Another Indian step towards global financial family. Singapore’s PayNow and India’s UPI integration launched. This is significant in the periphery of India’s elevating international financial stature.
Both the fast payment systems including Indian UPI along with Singapore’s PayNow were in the process of the integration for last two years. In September 2021 the process was initiated to facilitate faster, which is going to prove more transparent and efficient cross-border transactions pertaining to travel, trade and remittances between the two nations.The move is also helpful for Singapore’s Indian diaspora, especially students and migrant workers via low-cost and instantaneous money transfers from Singapore to India and vice-versa.
The UPI (Unified Payments Interface) India’s real-time retail payment system permits quick digital payments via apps like PayTm and BharatPe. While the equivalent network in Singapore which is called PayNow is getting integrated today. The objective is to enable faster remittances at a competitive rate between India and Singapore.
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Shaktikanta Das, RBI Governor and Ravi Menon, Managing Director, Monetary Authority of Singapore launched the new linkage. The function witnessed the presence of PM Modi and Singapore’s PM Lee Hsien Loong.
This is the UPI-PayNow connectivity
Cross-border retail payments are known to be more expensive and less transparent in comparison with domestic transactions. The UPI-PayNow connectivity is going to prove a significant milestone in the infrastructure development to be used in cross-border payments between Singapore and India. It also will closely align with the G20’s financial inclusion priorities of cheaper, driving faster along with existing as more transparent cross-border payments.
What are UPI and PayNow?
India’s mobile-based fast payment system, Unified Payments Interface (UPI) allows customers to make twenty-four into seven payments instantly. On the other hand, PayNow being a quick payment system in Singapore enables peer-to-peer transition with a funds transfer service. It is available to retail customers via the participation of NFIs (Non-Bank Financial Institutions) and banks in Singapore. It also permits users to receive and send instant funds from one e-wallet or bank or account to another in Singapore and it only requires the users’ mobile numbers.
