The Unified Payments Interface (UPI) in India, which has enabled swift digital payments via applications like BharatPe and Paytm, and its comparable network in Singapore, PayNow, were merged today (Feb 21) to enable speedier remittances between the two nations at a competitive rate.
Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong virtually attended the launch of cross-border connectivity between UPI and PayNow via videoconferencing.
The UPI-PayNow Linkage will enable frictionless real-time direct money transfers between India's UPI and Singapore's premier payment platform PayNow. After the US, UAE and UK, Singapore is among the top countries sending remittances to India, showed RBI data.
The UPI-PayNow linkage will enable Indian diaspora in Singapore, especially migrant workers and students, via instantaneous and low-cost transfer of money from Singapore to India and vice-versa.
In order to send money from India to Singapore or vice versa, users will be required to login to their bank’s mobile app or net banking. Head towards ‘outwards remittances’, agree with the terms, and enter the beneficiary’s mobile number, UPI ID or virtual payments address.
Tap on the ‘Proceed’ after validation and then enter the amount to be transferred, check the summary and enter the UPI PIN based on your mobile application’s requirements.
For now, selected customers of Singapore’s largest bank can transfer funds of as much as 200 Singapore dollars per transaction, capped at 500 Singapore dollars a day. It will then increase to all customers by March 31, and they can transfer funds of as much as 1,000 Singapore dollars a day.
For Singapore, there are two entities on board for UPI-PayNow linkage- DBS Group Holdings (which is a bank) and Liquid Group (which is a non-bank financial institution).
In India, the banks involved in UPI-PayNow linkage are Axis Bank, DBS India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India.
The linkage facility will be available for travellers from G20 countries arriving at select international airports.
Indian travellers will be able to use PhonePe to facilitate payments across countries.