India and Singapore will link their respective rapid payment systems – Unified Payments Interface (UPI) and PayNow – to enable users to make instant, low-cost money transfers on a reciprocal basis, the Reserve Bank said on Tuesday. . The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) have announced plans to link rapid payment systems. The link is expected to be operational by July 2022, the RBI said in a statement.
“The UPI-PayNow link will allow users of either of the two fast payment systems to make instant and low-cost funds transfers on a reciprocal basis without the need to register with the other payment system,” said he declared. RBI said the UPI – The PayNow link is an important milestone in the development of infrastructure for cross-border payments between India and Singapore, and closely aligns with the G20 financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
The link builds on previous efforts by NPCI International Private Limited (NIPL) and Network for Electronic Transfers (NETS) to foster cross-border interoperability of payments using cards and QR codes, between India and Singapore. It will further anchor trade, travel and remittance flows between the two countries.
This initiative is also in line with RBI’s vision to review the corridors and fees for inbound cross-border remittances outlined in the 2019-21 Payments Systems Vision document. It should be mentioned here that UPI is a mobile-based fast payment system that allows customers to make payments instantly around the clock using a customer-created Virtual Payment Address (VPA).
This eliminates the risk of sharing bank details by the sender. UPI supports person-to-person (P2P) and person-to-merchant (P2M) payments and allows a user to send or receive money. PayNow is Singapore’s fast payment system that enables a peer-to-peer money transfer service, available to retail customers through participating banks and non-bank financial institutions (NFIs) in Singapore.
It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore just using their cell phone number, Singapore NRIC / FIN or VPA.
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