New Delhi: In a virtual conference between respective heads of state, India and Singapore on Tuesday kicked off the payment linkage between Unified Payment Interface (UPI) and Singapore's PayNow. The launch, presided over by Prime Minister Narendra Modi and Singapore PM Lee Hsien Loong, was hailed by the former as the beginning of a new chapter in Fintech connectivity.
"From today onwards, people in Singapore and India will be able to transfer money from their mobile phones in the same way as they do within their respective countries" a PMO statement quoted Modi as saying. "The Digital India campaign has also made possible unprecedented reforms in governance and public service delivery. It is the power of India's digital infrastructure that during the Covid pandemic, we were able to transfer money directly to the bank accounts of crores of people" it further added.
The move is also expected to help the Indian diaspora in Singapore, including migrant workers, students, and other professionals using immediate, low-cost transfer of funds. While UPI allows users to make instant, anytime payments using a Virtual Payments Address (VPA) linked to the respective bank account without revealing account details, PayNow operates by providing users the option of transferring Singapore Dollars between accounts created in participating banks as well as non-bank financial institutions.
Meanwhile, in a statement, the Reserve Bank of India said that initially, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward transactions, while Axis Bank and DBS India will be facilitating only inward transactions. For users in Singapore, the service will be provided by DBS Singapore and Liquid Group. According to reports, Indian users will be able to send remittances of up to Rs 60,000 (969.74 SGD) per day on a preliminary basis.
"The PayNow-UPI linkage was first conceived in 2018 during PM Modi’s visit to Singapore. Digital connectivity was also discussed at the inaugural India-Singapore Ministerial Roundtable (ISMR) last September" the Singaporean PM said in a statement, noting that strong technological solutions will further emerge from the India-Singapore partnership, leading to more opportunities for the digital economies of both countries.
