India, Singapore launch linkage of real-time payment systems

The cross-border connectivity between the Unified Payments Interface (UPI) and PayNow of Singapore will “benefit students, professionals, NRIs, and their families the most”, PM Modi said

Prime Minister Narendra Modi, along with Singapore counterpart Lee Hsien Loong, on February 21 launched the cross-border connectivity of real-time digital payment systems via video conferencing.

Now, the easy linkage between India’s Unified Payments Interface (UPI) and Singapore’s PayNow will allow residents across the two regions to undertake faster and cost-efficient transfers. The instant and low-cost transfer is particularly useful for migrant workers and students studying in both countries, a statement issued by the Prime Minister’s office yesterday said.

Tuesday’s launch was virtually attended by Reserve Bank of India (RBI) Governor Shaktikanta Das and Monetary Authority of Singapore (MAS) managing director Ravi Menon.

“This linkage will provide a low-cost real-time payment option to people from both countries and increase remittance. This will benefit students, professionals, NRIs, and their families the most,” Mr. Modi said.

“A key emphasis of the Prime Minister has been on ensuring that the benefits of UPI are not limited to India only, but other countries too benefit from it,” the statement said. It added that India under the helm of PM Modi has emerged as one of the fastest-growing ecosystems for fintech innovation, and will help drive globalisation of India’s “best-in-class digital payment infrastructure”.

The UPI-based payment ecosystem has witnessed significant attention recently. In January, the National Payments Corporation of India (NPCI) enabled international (phone) numbers to be able to transact using UPI. Later, the Union Cabinet chaired by PM Modi approved incentivisation schemes for promoting low-value BHIM-UPI transactions in FY 2022-23.

In February this year, PhonePe, launched support for the “UPI international” payments, allowing Indian users travelling abroad to pay foreign merchants using UPI.