India has officially linked UPI, its online payment system with Singapore’s PayNow for easy and smooth cross-border transaction between the 2 countries. Due to this people in both the countries will now be able to transfer money in real time through the help of a QR code or just by entering the mobile number linked to their bank accounts.
UPI is an instant real-time payment system developed by National payments Corporation of India (NPCI) and PayNow was developed by Association of Banks in Singapore.
Due to this linkage people will enable low-cost fund transfer instantly between the 2 countries. Mehul Mistry, Global Head-Strategy, Digital Financial Services& Partnerships at Wibmo stated that this linkage will help Indian students and workers living in Singapore, which according to the ministry of external affairs (MEA) document population of overseas Indians(2022) is approximately 6.5 lakh Indians that includes non-resident Indians and persons of Indian origin, this will help them for quick and cost-effective money transfer, “the move is an example of leveraging technological innovations for a better payment ecosystem,” he added.
The Reserve Bank of India (RBI) stated that this linkage will be a significant milestone in the development of next-generation infrastructure for cross-border payments between India and Singapore. It also aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.