India, Singapore launch real-time payments, link UPI with PayNow

The facility was launched through token transactions using the UPI-PayNow linkage.

PM Modi called the venture a new milestone in relations between the two countries.

“The linkage of Unified Payments Interface (UPI) and PayNow is a new milestone in India-Singapore relations and its launch is a gift to the citizens of the two countries,” PM Modi said.

“In today’s era, technology connects us in several ways. Fintech is a sector that connects people with each other. Normally, it is confined within the boundaries of one country. But today’s launch has started a new chapter of cross-border Fintech connectivity,” the prime minister Modi said.

He added: “This will especially benefit our diaspora, professionals, students, and their families.”

The UPI-PayNow linkage will enable users of the two fast payment systems in either country to make convenient, safe, instant, and cost-effective cross-border funds transfers using their respective mobile apps.Funds held in bank accounts or e-wallets can be transferred to and from India using just the UPI-id, mobile number, or Virtual Payment Address (VPA).

“The PayNow-UPI linkage is the world’s first such linkage featuring cloud-based infrastructure and participation by non-bank financial institutions. As we progressively add more users and use cases, the PayNow and UPI linkage will grow in utility and contribute more to facilitating our trade and our people to people links,” said Singapore’s Lee.

To begin with, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances, while Axis Bank and DBS India will facilitate inward remittances.

For Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution). More banks will be included to the linkage over time.

To begin with, an Indian user can remit up to ₹60,000 in a day – equivalent to around S$1,000. At the time of making the transaction, the system shall dynamically calculate and display the amount in both the currencies for convenience of the user.

The UPI-PayNow linkage is the product of extensive collaboration between Reserve Bank of India, Monetary Authority of Singapore and Payment System Operators of both countries – NPCI International Payments Limited and Banking Computer Services Pte Ltd, participating banks and non-bank financial institutions.

This interlinkage aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments and will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore.