Explainer: India’s UPI, Singapore’s PayNow linked
UPI & PayNow linked: India has officially announced its Unified Payments Interface (UPI) linkage with its equivalent network in Singapore called PayNow.
The cross-border real-time payment systems linkage was launched at 11am on Monday led by Reserve Bank of India (RBI) governor Shaktikanta Das and Ravi Menon, managing director of the Monetary Authority of Singapore.
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Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong virtually attended the launch event.
The recent move between India and Singapore to benefit every sector the society whether businesses, individuals, students or migrant workers.
The low-cost, faster and 24x7 cross-border connectivity project can be utilised by Indians using Google Pay, Paytm and other similar digital payment systems to transfer money to people in Singapore.
What is UPI?
The UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that allows instant fund transfers between bank accounts through a mobile device.
What is PayNow?
PayNow is a peer-to-peer funds transfer service in Singapore that allows users to send and receive money instantly using just their mobile numbers or National Registration Identity Card (NRIC) numbers.
Benefits of linking of UPI & PayNow
Instant fund transfers
The linking of UPI and PayNow will enable users in India and Singapore to make instant fund transfers to each other's bank accounts using their respective mobile payment apps.
Benefit to Indians in Singapore
The cross-border linkage will benefit Indian migrants, students and tourists in Singapore as it allows faster and cost-efficient funds transfer across both countries without the mandate of getting onboard the other payment system.
Digital connectivity
The link between the two systems also paves the way for establishing more comprehensive digital connectivity and interoperability between the two countries.
Economic ties
The linking of UPI and PayNow is part of a larger effort by the two countries to deepen economic and digital ties. The two countries have also signed a Digital Economy Agreement (DEA) to enhance collaboration in areas such as e-payments and digital identity.
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This new UPI and PayNow linking will benefit approximately 6.5 lakh Indians, including non-resident Indians and persons of Indian origin, currently residing in Singapore.
- With inputs from agencies
