The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announced a project to link their respective fast payment systems, Unified Payments Interface (UPI) and PayNow. The linkage is targeted to be operational by July 2022.
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 the need to join the other payment system.
The UPI-PayNow linkage is an important milestone in the development of infrastructure for cross-border payments between India and Singapore and is closely aligned with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
The linkage builds upon the earlier efforts of NPCI International Pvt Ltd (NIPL) and Network for Electronic Transfers (NETS) to promote cross-border inter-operability of payments using cards and QR codes, between India and Singapore and will further anchor trade, travel and remittance flow between the two countries. This initiative is also in line with RBI’s vision to review corridors and charges for inbound cross-border remittances outlined in the Payment Systems Vision Document 2019-21.
What is UPI?
UPI is India’s mobile-based, ‘fast payment’ system that allows customers to make payments round the clock using a Virtual Payment Address (VPA) created by the customer. This eliminates the risk of the sender sharing bank account details. UPI supports both Person to Person (P2P) and Person to Merchant (P2M) payments as well as it enables the user to send or receive money.
What is PayNow?
PayNow is Singapore’s fast payment system that enables a peer-to-peer fund transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore. It enables users to send and receive funds instantly from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore NRIC/FIN, or VPA.