The Republic of India and Singapore have finished the technological steps necessary to connect their instant real-time payment systems Unified Payments Interface (UPI) and PayNow, respectively. This would allow funds to be transferred instantly and affordably between the 2 nations.
The initiative to integrate PayNow and the Unified Payments Interface (UPI) is expected to launch shortly. It has been jointly developed by Singapore’s central bank and financial regulatory authority, the Monetary Authority of Singapore (MAS), and India’s central bank and regulatory body, the Reserve Bank of India (RBI). Money can be sent via mobile phone numbers from India to Singapore through the proposed linkage and utilizing UPI Virtual Payment Address (VPA) from Singapore to India.
The Indian High Commissioner in Singapore, Periasamy Kumaran, said that anyone residing in Singapore could send money to their relatives living in India after Singapore connects PayNow with Unified Payments Interface (UPI), which is expected to be completed within the months to come.
Around two lakh employees are thought to travel to Singapore for short-term employment, and many of them send money back home. Particularly migrant employees will profit from the Unified Payments Interface (UPI) – PayNow link since they typically forgo roughly 10% fees in making bank transfers.
India’s envoy to Singapore said that the practical ramifications are that any employee who wishes to transfer even a tiny amount can do so for a fraction of the cost that the typical money transfer providers demand. Therefore, it would be advantageous for people who can transfer money in smaller amounts rather than all at once and at a lower cost.
It is anticipated that the PayNow – Unified Payments Interface (UPI) link will become considerably more common when it becomes acceptable. Individuals will find it simpler to buy and sell inside the area by scanning the Unified Payments Interface (UPI)-based Quick Response or QR codes if the payment systems are linked. It’s far more straightforward to use a QR code or UPI system.