Central banks of the two countries said on Tuesday that India and Singapore are working to link their digital payment systems to enable “immediate, low-cost fund transfers” to circumvent cross-border transactions.
The Reserve Bank of India said the project to link India’s Unified Payments Interface (UPI) and Singapore’s Penau is targeted to be operational by July 2022. Banks said users of either system would be able to transact with each other without having to sign up on the other platform.
The UPI-PayNow linkage is an important milestone in the development of infrastructure for cross-border payments between India and Singapore, and closely aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments. Has happened. Bank said in a statement.
UPI, a payment infrastructure developed by a consortium of retail banks, has become the most popular digital payment method in India. The railroad, adopted by several local and global firms, including Google and Facebook, is now processing more than 3 billion transactions every month. Like UPI, Singapore’s PayNow also brings interoperability between banks and payment apps, allowing the user to transact from one payment app to another.
“The linkage builds on the earlier efforts of NPCI International Pvt Ltd (NIPL) and Network for Electronic Transfer (NETS) to promote cross-border inter-operability of payments using cards and QR codes between India and Singapore. And business will take the journey forward. Remittance flow between the two countries. This initiative is in line with the Reserve Bank of India’s approach to review corridors and charges for inbound cross-border remittances outlined in it. Payment System Vision Document 2019-21“
This is a developing story. More to follow…