UPI to be linked to Singapore’s PayNow by July 2022

The level has seen implicit 4.9 cardinal registrations, arsenic connected January 3, according to the Association of Banks successful Singapore.

The Reserve Bank of India (RBI) connected Tuesday said it is moving connected a task with the Monetary Authority of Singapore to nexus the Unified Payments Interface (UPI) with the city-state’s accelerated payments strategy PayNow. The linkage is targeted to beryllium operational by July 2022.

The linkage volition alteration users of each outgo strategy to marque instant, low-cost money transfers connected a reciprocal ground without getting connected committee the different system, the Indian cardinal slope said.

“The UPI-PayNow linkage is simply a important milestone successful the improvement of infrastructure for cross-border payments betwixt India and Singapore, and intimately aligns with the G20’s fiscal inclusion priorities of driving faster, cheaper and much transparent cross-border payments,” the RBI said.

The linkage builds upon the earlier efforts of NPCI International (NIPL) and Network for Electronic Transfers (NETS) to foster cross-border interoperability of payments utilizing cards and QR codes betwixt India and Singapore. The linkage volition further anchor trade, question and remittance flows betwixt the 2 countries, the RBI said.

The inaugural is besides successful enactment with the RBI’s imaginativeness of reviewing corridors and charges for inbound cross-border remittances outlined successful the Payment Systems Vision Document 2019-21. In that document, released successful May 2019, the RBI had observed that the outgo of remitting funds is progressively becoming a cardinal constituent influencing the size of remittances.

“High outgo of remittance made done ceremonial channels whitethorn thrust customers to informal channels, which are little unafraid and prone to misuse,” it had said successful the document, adding that it would analyse the relation that outgo services providers tin play to guarantee friction-free remittances astatine little cost.

UPI is India’s mobile-based outgo strategy that facilitates customers to marque round-the-clock payments instantly and straight from their slope accounts utilizing a virtual outgo code (VPA) created by the customer. In August, UPI clocked implicit 3.5 cardinal transactions worthy Rs 6.39 lakh crore.

PayNow is the accelerated outgo strategy of Singapore which enables peer-to-peer funds transportation service, disposable to retail customers done participating banks and non-bank fiscal institutions successful Singapore. It enables users to nonstop and person instant funds from 1 slope oregon e-wallet relationship to different successful Singapore by utilizing conscionable their mobile number, Singapore NRIC/FIN oregon VPA. The level has seen implicit 4.9 cardinal registrations, arsenic connected January 3, according to the Association of Banks successful Singapore.