Only person-to-person (P2P) remittances are allowed under the cross-border linkage between India and Singapore using their respective Fast Payment Systems—Unified Payments Interface (UPI) and PayNow—according to Reserve Bank of India.
Such remittances should be towards the purpose of “maintenance of relatives abroad” and “gift” under the liberalised remittance scheme (LRS), and the prescribed LRS limits would be applicable, RBI said in its frequently asked questions on the UPI-PayNow Interlinkage.
There is a daily transaction limit of ₹60,000 in a day, equivalent to around Singapore Dollar (SGD) 1,000, for undertaking cross-border remittance transactions through the UPI-PayNow interlinkage, per the FAQs.
RBI said that there is an opt in/opt out feature in the apps of the participating banks in India for receiving the remittances from Singapore.
There are six participating Indian banks—Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India—for receiving remittances through the UPI-PayNow interlinkage.
There are four participating Indian banks—ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India—for sending remittances through the UPI-PayNow interlinkage.
Two Singapore entities—DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution)—have been enabled for the UPI-PayNow interlinkage.
Going forward, UPI-PayNow interlinkage can be expected to cover more banks and financial institutions in India, said the RBI.
Cross-border remittance transactions through UPI-PayNow interlinkage can be carried out with ease similar to how the domestic transactions through UPI or PayNow take place, and the transaction can be completed within a minute, it added.