The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announced a project to connect their fast payment systems-Unified Payment Interface (UPI) and PayNow.
The goal of the link is to be operational by July 2022.
The UPI-PayNow link will enable users of each of the two fast payment systems to make instant, low-cost fund transfers on a reciprocal basis, without the need to join another payment system.
This is an important milestone in the development of cross-border payment infrastructure between India and Singapore, and is closely integrated with the G20’s inclusive financial priorities to promote faster, cheaper and more transparent cross-border payments.
The link builds on the early efforts of NPCI International Private Limited (NIPL) and the Electronic Funds Transfer Network (NETS) to promote cross-border interoperability of payments using cards and QR codes between India and Singapore.
An official statement stated that this will further consolidate the flow of trade, travel and remittances between the two countries. This move is also in line with the Reserve Bank of India’s review of the vision of inbound cross-border remittance corridors and fees outlined in the Payment System Vision 2019-21.
UPI is India’s mobile-based fast payment system, which can help customers use the virtual payment address (VPA) created by the customer to make instant payments around the clock. This eliminates the risk of the sender sharing bank account details.
UPI supports person-to-person (P2P) and person-to-business (P2M) payments because it also enables users to send or receive funds.
PayNow is a fast payment system in Singapore that provides peer-to-peer fund transfer services to retail customers through participating banks and non-bank financial institutions (NFI) in Singapore.
It allows users to send and receive instant funds from one bank or e-wallet account to another bank or e-wallet account in Singapore just by using their mobile phone number, Singapore ID/FIN or VPA.