Thursday, March 23rd, 2023

India’s UPI and Singapore’s PayNow are linked. What is its benefit?

India and Singapore can instantly transfer money to each other via UPI and PayNow. Prime Minister Narendra Modi and Singapore PM Lee Hsien Loong have launched cross-border connectivity through Unified Payments Interface (UPI) and PayNow.

In today’s era, technology connects us in different ways. On 21st Feb 2023, the launch started a new chapter of cross-border Fintech connectivity said, Modi. This is very useful to migrant workers and students through instantaneous and low-cost transfer of Money from Singapore to India and vice-versa.

This is a low-cost, faster, and 24*7 cross-border connectivity project and can be utilized by India’s Google Pay, Paytm, and other similar digital payment systems to transfer money to people between India and Singapore.

How does it work, what does this move of the government mean?

Once this is implemented, fund transfers can be made from India to Singapore using Mobile phone numbers, and vice versa using UPI virtual payments.

This project greatly benefits the Indian people, Migrants workers, and Students. In Singapore, this is allowed faster and more cost-efficient fund transfers across both countries without the mandatory of getting onboarded and payment system. According to the RBI Remittance Survey 2021, Singapore placed in the top four in the remittance market for India.

The Linkage between UPI and PayNow will directly benefit individuals and businesses in both India and Singapore that greatly rely on this mode of payment. PayNow and UPI are integral components of their national digital infrastructures, the link between these two systems allows for establishing more digital connectivity and interoperability between these two countries.

The RBI said that the linkage will be a great milestone in the development of next-generation support for cross-border payments between India and Singapore. This will closely align with the G20’s financial inclusion priorities of transferring faster, Cheaper, and more transparent cross-border payments.

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