“The UPI-PayNow linkage will allow customers of every of the 2 quick fee methods to make immediate, low-cost fund transfers on a reciprocal foundation with no have to get onboarded onto the opposite fee system,” it stated.
RBI stated the UPI-PayNow linkage is a big milestone within the growth of infrastructure for cross-border funds between India and Singapore, and carefully aligns with the G20’s monetary inclusion priorities of driving quicker, cheaper and extra clear cross-border funds.
The linkage builds upon the sooner efforts of NPCI Worldwide Non-public Restricted (NIPL) and Community for Digital Transfers (NETS) to foster cross-border interoperability of funds utilizing playing cards and QR codes, between India and Singapore.
It would additional anchor commerce, journey and remittance flows between the 2 international locations.
This initiative can be consistent with RBI’s imaginative and prescient of reviewing corridors and costs for inbound cross-border remittances outlined within the Fee Techniques Imaginative and prescient Doc 2019-21.
It’s to be talked about right here that UPI is a mobile-based quick fee system that facilitates prospects to make around the clock funds immediately utilizing a Digital Fee Deal with (VPA) created by the shopper.
This eliminates the chance of sharing checking account particulars by the remitter. UPI helps each Individual-to-Individual (P2P) and Individual-to-Service provider (P2M) funds and permits a consumer to ship or obtain cash.
PayNow is the quick fee system of Singapore which permits peer-to-peer funds switch service, obtainable to retail prospects by way of collaborating banks and Non-Financial institution Monetary Establishments (NFIs) in Singapore.
It permits customers to ship and obtain immediate funds from one financial institution or e-wallet account to a different in Singapore through the use of simply their cell quantity, Singapore NRIC/FIN, or VPA.