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India’s Unified Payments Interface (UPI) and Singapore’s PayNow have been integrated to boost cross-border transactions.
PayNow is an instant payment service that allows transactions in Singapore dollars.
The cross-border real-time payment system was launched in the presence of the Reserve Bank in India (RBI) Governor Shaktikanta Das, and Managing Director of the Monetary Authority of Singapore Ravi Menon. In addition, Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong were virtually present at the event.
It aims at making cross-border payments available 24x7, cut on payment costs and ensure easy transfer. Indians can avail the facilities via Paytm and Google Pay.
How will the linkage payment work?
The new linkage payment mode will allow users to send or receive money with just a mobile number.
State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will work on inward and outward remittances while Axis Bank and DBS India will look into inward remittances, according to Reserve Bank of India (RBI).
As for Singapore users, the service will be available via DBS-Singapore and Liquid Group (non-bank institutions).
In the initial days, Indian users can remit up to ₹60,000 (S$969.65) per person per day.
Who will benefit?
The project aims to levitate financial transactions for Indian migrant workers and students living in Singapore. As per RBI Remittance Survey of 2021, Singapore stands in the top four inward remittances market for India
Monetary Authority of Singapore (MAS) Chief Fintech Officer Sopnendu Mohanty said that the integration of such cross-border payment linkage system will reduce the cost of sending remittances by 10 per cent approximately.
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