Mumbai: To enable users to make instant, low-cost fund transfers, India and Singapore will link their respective fast payment systems — Unified Payments Interface (UPI) and PayNow. The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announced the project to link fast payment systems. The linked interface is expected to be operationalised by July 2022, RBI said in a statement.
“The UPI-PayNow linkage will enable users of each of the two fast payment systems to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system,” it said.
A significant milestone
The RBI said that the linkage will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore. It will also closely align with the G20’s (an intergovernmental forum comprising 19 countries and the European Union) financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
What is UPI?
UPI is a mobile-based fast payment system that facilitates customers to make round the clock payments instantly using a Virtual Payment Address (VPA) created by the customer. This eliminates the risk of sharing bank account details by the remitter. UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and enables a user to send or receive money.
What is PayNow?
PayNow is the fast payment system of Singapore that enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore. It enables users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore NRIC/FIN, or VPA.
-With inputs from PTI
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