Residents of Singapore and India can now instantly transfer money between each other through the new Unified Payments Interface (UPI) and PayNow.
Launched on Monday at 11 am, the linking of real-time cross-border payment systems is led by Reserve Bank of India (RBI) Governor Shaktikanta Das and Ravi Menon, Managing Director of the Monetary Authority of Singapore .
Indian Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong virtually attended the launch event.
This link is a low-cost, faster, 24/7 cross-border connectivity project that can be very beneficial in transferring capital for both parties.
This can be used by Indians using:
- Google Pay,
- pay,
- and other similar digital payment systems.
UPI is a mobile-based fast payment system that facilitates customers to make 24-hour payments instantly using a virtual payment address (VPA). (Archive)
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UPI, India
- UPI, Unified Payments Interface, developed by National Payments Corporation of India (NPCI).
- It is a fast payment method that allows instant transfer of funds via a mobile phone.
- It is produced by creating a Virtual Payment Address (VPA).
- Through this means, the risk of sharing bank account data is eliminated.
- The real-time system supports person-to-person (P2P) and person-to-merchant (P2M) payments.
PayNow, Singapore
- Very similar to India’s instant virtual payment system, UPI, PayNow is its Singapore counterpart.
- Users can transfer money with just a mobile number, from one bank or e-wallet account to another in Singapore.
- This peer-to-peer payment link is enabled through participating banks and non-banking financial institutions (NFIs) in the country.
Bonding Benefits
After implementation, funds can be transferred from India to Singapore using mobile numbers and vice versa using UPI virtual payment addresses.
- Indian Students in Singapore: The project is expected to greatly benefit the Indian diaspora. It will help migrant workers and students in Singapore.
- Fast and instant transfer of funds: allows faster and more cost-effective transfer of funds between both countries without the mandate to join the other payment system.
- Good market for India: RBI Remittance Survey, 2021, Singapore figures say it is among the top four inbound remittance markets for India.
- The Ministry of External Affairs (MEA) says that in the Overseas Indian Population (2022) document, there are approximately 6.5 lakh Indians, including non-resident Indians and people of Indian origin, currently residing in Singapore.
- Reduce the cost of sending remittances: Sopnendu Mohanty, head of fintech at the Monetary Authority of Singapore (MAS), on the sidelines of the G20 First Working Group meeting on financial inclusion in Kolkata, said system integration will reduce the cost of sending remittances by up to 10 percent.
“By reducing the cost and inefficiencies of remittances between Singapore and India, the PayNow-UPI link will directly benefit people and businesses in Singapore and India who rely heavily on this mode of payment. As PayNow and UPI are integral components of their national digital infrastructures, the link between the two systems also paves the way for establishing more comprehensive digital connectivity and interoperability between the two countries.” Mohanty added.
- Next Generation Development: The RBI stated that the link will be a substantial milestone in the development of next generation infrastructure for cross-border payments between India and Singapore.
Bottom line
This new project aligns closely with the G20 financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
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Source: ptivs2.edu.vn