Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong on Tuesday witnessed the launch of cross-border connectivity between UPI and PayNow via videoconferencing. The linkage will allow transfer of fund between India and Singapore in a swift and cost-effective way just by using phone number. Here’s all about the UPI-PayNow linkage:
UPI-PayNow Linkage: What Does It Mean?
The UPI-PayNow Linkage will allow hassle-free real-time direct transfer of money between India’s UPI and Singapore’s leading payments platform PayNow. According to the RBI data, Singapore is among the top countries sending remittances to India, after the US, United Arab Emirates and the UK.
The linkage has further expanded the scope of payments through UPI. Recently, PhonePe also enabled payments abroad and said all international merchant outlets in the UAE, Singapore, Mauritius, Nepal and Bhutan that have a local QR code are supported.
The linkage will also help the Indian diaspora in Singapore, especially migrant workers and students, through instantaneous and low-cost transfer of money from Singapore to India and vice-versa.
How Will It Work?
For sending money from India to Singapore or vice-versa, users need to login to their bank’s mobile app or net banking. Go to ‘outwards remittances’, agree with the terms, and enter the beneficiary’s mobile number, UPI ID or virtual payments address. After validation, click on the ‘Proceed’, enter the amount to be transferred, check the summary and enter the UPI PIN based on your mobile application’s requirements. And It’s done!
India accounts for 40 per cent of the total digital payments globally, which is primarily led by UPI.
Is There Any Per-Day Limit On Transactions?
According to a DBS statement, for a start, selected customers of Singapore’s largest bank will be able to use the so-called PayNow-UPI linkage to transfer funds of as much as 200 Singapore dollar per transaction, capped at 500 Singapore dollar a day. The service will be extended to all customers by March 31, and they will be able to transfer funds of as much as 1,000 Singapore dollar a day.
How Many Banks, NBFCs Are Onboard?
The UPI money transfer between India and Singapore can be done through mobile app or net banking of only participating banks or non-banking institutions. Currently, there are eight financial institutions on this linkage.
From the Singapore side, there are two entities — DBS Group Holdings (which is a bank) and Liquid Group (which is a non-bank financial institution). In India, the banks participating in this linkage are Axis Bank, DBS India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India.
Ashwin Chawwla, CEO & founder of Escrowpay, said, “The launch of the real-time payment systems linkage represents a major advancement in global connectivity for the finance industry. For consumers and businesses in both countries, this partnership between the PayNow of Singapore and the UPI of India will offer quicker, more secure, and more practical payment choices. We look forward to supporting this effort to promote greater economic growth and prosperity for both nations since escrow platforms will play a crucial role as a trusted middleman in guaranteeing smooth and secure transactions.”
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