The introduction of cross-border linkage between the Unified Payments Interface (UPI) of India and PayNow of Singapore has been noticed by Prime Ministers Narendra Modi of India and Lee Hsien Loong of Singapore. The cross-border hyperlink was launched by Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), and Shaktikanta Das, governor of the Reserve Bank of India (RBI). In India, UPI turned the most well-liked cost technique in 2022 with 74 billion transactions totalling greater than ₹126 trillion. According to consultants, the mixing of the 2 digital cost methods will make it doable for residents of each nations to ship cross-border remittances extra conveniently, rapidly and securely. Let’s learn the way.
Speaking on the initiative, Akash Sinha, Co-founder & CEO, Cashfree Payments mentioned “The initiative of linkage between India’s Unified Payments Interface (UPI) and Singapore’s PayNow, by the Indian Government is a vital growth within the nation’s cross-border crucial. The connectivity between the 2 cost methods will make cross-border remittances extra handy, fast and cost-efficient. This transfer will bolster the commerce and remittance circulate between the 2 nations. It will considerably profit migrant staff, vacationers, small companies, and enterprises. This may even set up a major basis for cross-border funds between India and ASEAN nations, creating a positive setting for digital funds past borders. In the grand scheme, this creates an enabling setting for innovators and regulators to speed up the supply of efficient digital funds options. It additionally supplies a safe and conducive setting for customers to undertake fintech options.”
Swapnil Jambhale, Co-founder and COO, Safexpay, the quickest rising world funds platform mentioned “The collaboration of two fast payments systems (UPI and PayNow) will enable real-time, efficient, and most importantly, safe cross border funds transfers for users at the comfort of their mobile phones. Remittance can be made through bank accounts or digital wallets via UPI, using just the UPI ID, VPA or mobile number. Additional information such as bank account number, IFSC code are not required. This is a testimony to India’s growth as the digital payments superpower, further it fosters an ecosystem for financial inclusion and digital India goals. RBI’s partnership with the Monetary Authority of Singapore (MAS) brings together extensive resources which will aid India’s fintech growth. Currently, only a few banks have been chosen from both the countries to offer this cross-border remittance service. Customers of the selected banks can use this service via net banking as well. This partnership also presents an opportunity for small and medium businesses who operate with partners present in Singapore, offering them a service to optimize cross-border payments or collection.”
Swapnil Jambhale, Co-founder and COO, Safexpay mentioned “The transfer of extending Unified Payments Interface (UPI) for in-bound travellers from the G20 nations comes at a strategic level after saying the UPI facility for NRI with NRE and NRO accounts linked with their cellular numbers. With G20 India Summit developing, this step will prove to strengthen India’s place because the funds chief within the world market. In-bound travellers from G20 nations will be capable to expertise UPI funds whereas transacting with totally different retailers. Once these travellers arrive in India, they’ll be capable to avail the power by complying with the mandatory process set by RBI on the airports and choose entry factors. India’s UPI is likely one of the most profitable digital funds system globally. Therefore, the extension of UPI companies to residents of G20 nations will foster India’s relationship with these nations for future collaborations.”
Supratik Nag Vice President – Product Management Maveric Systems said “The real-time payment networking with Singapore is just the beginning of a greater disruption of the digital payment ecosystem by India. Considering the Indian diaspora across the globe, the National Payments Corporation of India (NPCI) has recently been planning to allow NRIs from 10 countries, namely Singapore, Hong Kong, Oman, Qatar, Saudi Arabia, United Arab Emirates, USA, Australia, Canada, and the United Kingdom to digitally transfer funds using the UPI platform from their NRE/NRO accounts. Singapore is the first from this set of 10 countries. It is indeed a revolution that customers in these countries can make cross-border transactions with India in real time with just their foreign mobile numbers. Technically such a global real-time linkage of the payment systems reduces the dependency on the SWIFT network, thereby optimizing time and resources and enhancing cross-border remittance. This move is a big win from the customer’s perspective as it opens up a new avenue of payment experience and brings them closer to their homes. In India, while only 5 – 6 banks are a part of this current India-Singapore cross-border payment network, we can expect more banks to join in. The UPI- PayNow network could become the main channel of cross-border transactions between the two countries in the long run.”
On February 21, the Reserve Bank of India prolonged its unified funds interface (UPI) companies to incorporate guests from the G-20 nations. “To start with, it is available to travellers from G-20 countries, at select international airports (Bengaluru, Mumbai and New Delhi). Eligible travellers would be issued Prepaid Payment Instruments (PPI) wallets linked to UPI for making payments at merchant outlets,” the apex financial institution mentioned within the launch.
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