India, Singapore launch initiative to link UPI, PayNow for faster payments
The UPI-PayNow linkage will enable the customers of each of the two fast payment systems to make quick, low-cost fund transfers on a reciprocal basis without any need to get onboarded on the other payment system.
The Reserve Bank of India and the Monetary Authority of Singapore have announced an initiative that will link fast payment systems- Unified Payments Interface (UPI) and PayNow- of India and Singapore.
The announced linkage between the two nations has been targeted for operationalization by July 2022.
The latest project is in line with the Reserve Bank of India’s plan of reviewing the corridors and the charges for the inbound cross-border remittances that have been drafted in the Payment Systems Vision Document 2019-2021.
Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) have announced a project to link their respective fast payment systems — UPI and PayNow.— ANI (@ANI) September 14, 2021
The linkage is targeted for operationalization by July 2022.
• The linkage between UPI-PayNow will enable the customers of each of the two fast payment systems to make quick, low-cost fund transfers on a reciprocal basis without any need to get onboarded on the other payment system.
• The project will also be significant for the development of infrastructure for cross-border payments between Singapore and India.
• The UPI-PayNow linkage will further anchor travel, trade, and flow of payment between the two countries.
UPI-PayNow linkage: Key details
• The initiative by India and Singapore closely aligns with the G20’s financial inclusion priorities of driving cheaper, faster, and more transparent cross-border payments.
• The linkage between the two countries has been built upon the earlier efforts of NPCI International Private Ltd and the Network for Electronic Transfers to develop the cross-border interoperability of payments with the use of cards and QR codes between India and Singapore.
UPI in India:
Unified Payment Interface (UPI) is a mobile-based, fast payment system in India. It facilitates the customers to make round-the-clock payments instantly with the use of a Virtual Payment Address (VPA) that has been created by the user.
UPI eliminates the risk of sharing bank details by the remitter. It supports both Person to Person (P2P) and Person to Merchant (P2M) payments as the system also enables the user to send or receive the money.
PayNow in Singapore
PayNow is the fast payment system of Singapore. It enables peer-to-peer funds transfer service that has been available to the retail customers in the country through the participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
PayNow in Singapore enables the users to send and receive instant funds from one bank to another in the country by using just their mobile number, VPA, or Singapore NRIC/FIN.