The Economic Times - To enable faster remittances between India and Singapore, India's retail payment system Unified Payment Center Interface (UPI), and its equivalent network in Singapore called PayNow were integrated on February 21, 2023. This linkage will allow users from both countries to access faster and more cost-efficient cross border remittances. Read more
Unified Payments Interface (UPI) is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer. It eliminates the risk of sharing bank account details by the remitter. It supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments, and it also enables a user to send or receive money.
PayNow is a fast payment system in Singapore. It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore. It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.
UPI-PayNow Linkage
The UPI-PayNow linkage is a significant milestone in the development of infrastructure for cross border payments between India and Singapore and closely aligns with G20's financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
The UPI-PayNow integration will allow users of the two quick payment systems in either nation to send money across borders quickly, securely, and affordably via their respective mobile apps.
It is possible to send or receive money from India using only a UPI-id, cellphone number, or Virtual Payment Address for money held in bank accounts or e-wallets (VPA).
It will also help the Indian diaspora in Singapore, especially migrant workers and students through the instantaneous and low cost transfer of money from Singapore to India and vice versa.
Indian banks eligible for remittances: To begin with State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances while AXIS Bank and DBS India will facilitate inward remittances. For Singapore users, the service will be made available through DBS-Singapore and Liquid Group. More banks will be included in the linkage over time.
An Indian user can initially send up to ₹60,000 in one day, which is equivalent to around SGD 1000.
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