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Links Between Singapore And India UPI-PayNow For Instant International Payments

Real-time cross-border payment collaborations between nations are progressing, and instantaneous capabilities and faster payment infrastructures are proliferating at an increasingly sophisticated rate. In Asia alone, more nations are participating in real-time payments and collaborating, especially in the last few years.

The Unified Payments Interface (UPI) in India and Singapore’s PayNow were recently linked for the first time by the Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI). Consumers of the participating financial institutions in both countries will be able to transfer and receive money in real time between bank accounts or e-wallets in the other nation thanks to the collaboration.

The MAS, RBI, owners of the payment systems in both countries, PayNow and UPI real-time cross-border payments link operators, and participating banks and non-bank financial institutions worked closely together to make it happen. MAS embraces India’s G20 Presidency priorities to increase the cost, speed, access, and transparency of cross-border payments. “It is a significant milestone in improving the infrastructure for cross-border payments,” said MAS.

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Real-time cross-border payments between the two nations are now possible for the first time, with a non-bank financial institution taking part. According to MAS, the service will gradually become available to Singapore DBS Bank and Liquid Group customers. From today through the end of March 2023, “these institutions will gradually increase the number of eligible user groups and transaction limits,” the central bank stated.

Customers of all participating Indian banks who are Indian will be able to use the service to receive money right away. According to the RBI, “Sending of funds is currently limited to users of four Indian banks, with this scope to be gradually grew.” The commitment of the participating financial institutions to make the service affordable and accessible was noted by both central banks.

They can send and receive low-cost cross-border money transfers from their home countries, including foreign workers and students living in Singapore and India. The linkage also enables the automatic incorporation of capital control rules for greater efficiency. To gradually scale the association, MAS and RBI will increase both the number of participating financial institutions and the applicable use cases, according to MAS.

Akash Sinha, CEO & Co-Founder of Cashfree Payments, thinks opening the cross-border linkage between Singapore and India will improve trade and funds transfer flow between the two nations. He says it will significantly benefit tourists, small businesses, enterprises, and migrant workers.

Akash considers the connection will lay a solid foundation for cross-border payments between India and ASEAN nations, fostering a favorable environment for digital payments across borders. In the big picture, this creates an environment that allows innovators and regulators to deliver efficient digital payment solutions more quickly. Additionally, he added that it offers a safe and favourable environment for customers to adopt fintech solutions.

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Riya Kapoor

Riya Kapoor writes about lifestyle, entertainment, news and gadgets. She has been in this industry for almost 4 years now. She is a graduate from Delhi University with English Hons and had deep connection with writing since her childhood.

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