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.

Created On: Sep 14, 2021 13:51 IST
UPI-PayNow linkage
UPI-PayNow linkage

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.

Significance:

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.

Take Weekly Tests on app for exam prep and compete with others. Download Current Affairs and GK app

एग्जाम की तैयारी के लिए ऐप पर वीकली टेस्ट लें और दूसरों के साथ प्रतिस्पर्धा करें। डाउनलोड करें करेंट अफेयर्स ऐप

AndroidIOS

Related Stories

Comment (0)

Post Comment

8 + 2 =
Post
Disclaimer: Comments will be moderated by Jagranjosh editorial team. Comments that are abusive, personal, incendiary or irrelevant will not be published. Please use a genuine email ID and provide your name, to avoid rejection.

    Monthly Current Affairs PDF

    • Current Affairs PDF September 2021
    • Current Affairs PDF August 2021
    • Current Affairs PDF July 2021
    • Current Affairs PDF June 2021
    • Current Affairs PDF May 2021
    • Current Affairs PDF April 2021
    • Current Affairs PDF March 2021
    View all

    Monthly Current Affairs Quiz PDF

    • Current Affairs Quiz PDF September 2021
    • Current Affairs Quiz PDF August 2021
    • Current Affairs Quiz PDF July 2021
    • Current Affairs Quiz PDF June 2021
    • Current Affairs Quiz PDF May 2021
    • Current Affairs Quiz PDF April 2021
    • Current Affairs Quiz PDF March 2021
    View all