UPI linked to Singapore’s PayNow: PM Modi hails development, calls it 'new milestone in India-Singapore relations'

Top Highlights

> India’s UPI  was linked to its corresponding network PayNow in Singapore to enable faster remittances.

> The first transaction was done by RBI Governor Shaktikanta Das and MAS managing director Ravi Menon. 

> The linkage is projected to help the Indian diaspora in Singapore, especially migrant workers and students, through the instantaneous and low-cost transfer of money.

India’s retail payment interface Unified Payments Interface (UPI) was officially linked to Singapore’s PayNow on Tuesday in presence of Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong to enable faster remittances. The new linkage launch was done by the Reserve Bank of India (RBI) Governor Shaktikanta Das and the Monetary Authority of Singapore (MAS) Managing Director Ravi Menon through video conferencing in presence of PM Modi and Hsien Loong. 

The first transaction was done by RBI Governor Das and MAS managing director Ravi Menon.

The new linkage will help users to make convenient, safe, instant, and cost-effective cross-border fund 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 UPI-PayNow tie-up is an extensive collaboration between the RBI, Monetary Authority of Singapore (MAS), and Payment System Operators of both countries -- NPCI International Payments Limited (NIPL) and Banking Computer Services Pte Ltd. (BCS), and the participating banks and non-bank financial institution. 

To begin with, the 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, which is a non-bank financial institution. More banks will be included gradually in the linkage. 

Speaking at the launch, PM Modi said about 74 billion transactions amounting to more than Rs 126 lakh crore, which is approximately 2 lakh crore Singapore dollar, was done through the real-time UPI in 2022. 

He said: “The linkage of UPI and PayNow is a new milestone in India-Singapore relations and its launch is a gift to the citizens of the two countries.” 

He added further: “Many experts are estimating that very soon India’s digital wallet transactions are going to overtake cash transactions." A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure, Modi noted.  

The linkage is projected to help the Indian diaspora in Singapore, especially migrant workers and students, through the instantaneous and low-cost transfer of money from Singapore to India and vice-versa. 

“Many experts are estimating that very soon India’s digital wallet transactions are going to overtake cash transactions," Modi said on Tuesday.  

India has emerged as one of the fastest-growing ecosystems for fintech innovation. A key emphasis of the present government led by PM Modi has been on ensuring that the benefits of UPI are not limited to India only but extend to other countries as well. 

Also read: RBI’s UPI push: G20 travellers can use UPI for payments at select airports

For now, customers of the participating banks can undertake cross-border remittances to Singapore using the bank’s mobile banking app and internet banking. An Indian user can remit up to Rs 60,000 in a day.

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.

Talking about the milestone, Mehul Mistry, Global Head-Strategy, Digital Financial Services & Partnerships, Wibmo, said: “Singapore is one of the top four inward remittance markets for India, which is around 5.7 per cent of the total remittances to India. The digital linkage would lead to seamless real-time fund transfers, which will allow economic growth and cultural development. The facility to scan QR codes and carry out quick and cost-effective transactions across geographical boundaries will immensely help the Indian diaspora in Singapore, consisting largely of workers and students.”

“The launch of cross-border payment linkage between India and Singapore to enable the real-time transfer of funds is a much-awaited development. With this facility, funds held in bank accounts or e-wallets can be transferred to and from India using just the UPI ID, mobile number, or VPA. It will eliminate the need for having to enter the details of beneficiary, such as bank account number, bank code," said Mandar Agashe, MD, Sarvatra Technologies.

"The recent announcement of the linkage of UPI with Singapore’s PayNow will facilitate swift and more cost-efficient transfer of cross-border remittances for the residents of both nations. This move will likely make UPI a global hit and a preferred choice for the Indian diaspora to make low-cost transfers of money between the countries, thus providing the necessary push to digital payments," said Yashwant Lodha, Co-founder, PayNearby.