The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) revealed the UPI-PayNow linkage. It is a real-time payment system connection between India’s Unified Payments Interface (UPI) and its corresponding network of Singapore, PayNow. It will make it easier for residents of India and Singapore to send money across borders quickly.
What Does The Linkage Mean?
- The residents of both countries would gain because they could send money across borders in an easy, safe, quick, and cost-effective way.
- This is because the two countries payment systems are already connected.
- Individuals in both nations can transmit money in real-time via QR codes or by providing their mobile phone numbers with their bank accounts.
- “A new level of technology will be reached thanks to the connection of fintech services between Singapore and India,” said PM Modi in the inauguration ceremony.
- “People in both nations would have access to a real-time, low-cost platform for remittance transactions,” PM Modi said.
How Will This Linkage Work?
- The respective smartphone apps will make it simple for citizens of both nations to conduct transactions.
- Only the UPI-id, mobile number, or Virtual Payment Address is required to transfer money to or from India from bank accounts or e-wallets (VPA).
- Axis Bank and DBS India will initially handle inward remittances.
- In contrast, the State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank will take inward and outward remittances.
- The service will be available to Singapore consumers through DBS-Singapore and Liquid Group (a non-bank financial institution).
- Over time, the connectivity will expand to incorporate more banks.
- Customers of the aforementioned collaborating banks will initially have access to the service.
Participating Banks in Singapore and India
- Axis Bank, DBS Bank India, Indian Bank, Indian Overseas Bank, ICICI Bank, and State Bank of India are among the Indian banks (SBI).
- More banks and financial organizations will be included in the UPI-PayNow interlinkage in the future.
- DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are the banks from Singapore.
Transaction Limit for UPI-PayNow
- It will be Rs. 60,000 (around SGD 1,000).
- DBS users can initially send a maximum of SGD 200 per transaction, or SGD 500 per day, using the PayNow-UPI.
- All users will be allowed to send and receive up to SGD 1,000 per day by March 31, 2023.
- The SGD 500 cap only applies to DBS clients transferring money to India.
- More information must be provided concerning limits for money transfers made through Liquid Group (a Non-Bank Financial Institution) to India.
- Indian banks are yet to announce no transfer limits.
A press release from the RBI states, “This interlinkage lines up with the G20’s financial inclusion goals of driving speedier, cost-effective, and more credible cross-border payments and will be a considerable achievement in creating infrastructure for cross-border payments between India and Singapore.”