The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announced the project to link express payment systems. The link is scheduled for commissioning in July 2022, the RBI said in a statement.
“The UPI-PayNow link will allow users of each of the two express payment systems to make instant, low-cost fund transfers on a reciprocal basis without the need to join the other payment system,” he said.
RBI said the UPI-PayNow link is an important milestone in the development of infrastructure for cross-border payments between India and Singapore, and is closely aligned with the G20’s 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 card and QR code payments 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 of reviewing the corridors and charges for incoming cross-border remittances described in the Payment Systems Vision Document 2019-21.
It is worth mentioning here that UPI is a fast mobile-based payment system that makes it easy for customers to make 24-hour payments instantly using a customer-created Virtual Payment Address (VPA).
This eliminates the risk of the sender sharing the bank account details. UPI supports person-to-person (P2P) and person-to-merchant (P2M) payments and allows the user to send or receive money.
PayNow is Singapore’s fast payment system enabling peer-to-peer fund 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 using only their mobile phone number, Singapore NRIC / FIN or VPA.