The Reserve Bank of India said on Tuesday that India and Singapore will link their fast payments systems, Unified Payments Interface (UPI) and PayNow respectively. The project will be undertaken by the RBI and its Singaporean counterpart, the Monetary Authority of Singapore (MAS).
The RBI said in a notification that the UPI-PayNow linkage will enable users to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system.
The apex bank called the UPI-PayNow linkage a ‘significant milestone’ in the development of cross-border payments between India and Singapore. The linkage aligns with the G20’s financial inclusion priorities, it stated.
“The linkage builds upon the earlier efforts of NPCI International Private Limited (NIPL) and Network for Electronic Transfers (NETS) to foster cross-border interoperability of payments using cards and QR codes, between India and Singapore and will further anchor trade, travel and remittance flows between the two countries. This initiative is also in line with RBI’s vision of reviewing corridors and charges for inbound cross-border remittances outlined in the Payment Systems Vision Document 2019-21,” the RBI stated.
UPI enables users to make round the clock payments instantly using a Virtual Payment Address (VPA). It supports both Person to Person (P2P) and Person to Merchant (P2M) payments. Singapore’s PayNow enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs). It also enables users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number.
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