Singapore’s central bank said that a step has been taken to make it easy for the users to transfer funds on the two networks without getting onboarded onto the other payment system. RBI and Singapore central bank have agreed to link the payment services PayNow and the Unified Payments Interface by July next year. This move will enable users to make instant, low-cost fund transfers directly from one bank account to another between the countries.
“The UPI-PayNow linkage is a significant milestone in the development of infrastructure for cross-border payments between India and Singapore. It will closely align with the G20’s financial inclusion priorities of driving faster, cheaper, and more transparent cross-border payments,” the RBI said in a statement.
After implementing the project, transfers can be made from the city-state to India via UPI virtual payment addresses. Along with this, users in India can transfer funds to Singapore using a mobile phone number.
Earlier also, there were steps taken to enable this facility in foreign markets. In July, the National Payments Corporation of India had launched the payment system in Bhutan and recently it partnered with Mashreq to offer acceptance of the UPI in the UAE.
However, officials believe that transferring funds across countries can be made easy by linking the UPI as the UPI is a successful real-time payments system recognized globally.