The Reserve Bank of India (RBI) announced a project with the Monetary Authority of Singapore (MAS) to link Unified Payments Interface (UPI) and PayNow – their respective payment systems. This linkage is targeted for operations by July 2022 to enable UPI and PayNow users to make instant, low-cost fund transfers without signing up for the other payment system.
On one hand, Indian users have UPI as a fast payment method for round-the-clock payments. On the other, PayNow is an electronic fund transfer service that allows instant transfer of money using the payee’s Singapore NRIC/FIN, UEN number, or mobile number. PayNow also supports participating banks and NFIs (Non-Banking Financial Institutions).
UPI-PayNow Linkage Milestone
As per RBI Press Release, this linkage is a crucial milestone in the cross-border payments infrastructure development between our nation and Singapore. It also aligns with the priorities of the G20 to drive transparent cross-border payments.
The idea behind this linkage is based on the efforts laid by NIPL (NPCI International Private Limited) and NETS (Network for Electronic Transfers) to ensure cross-border interoperability of payments between the two countries, said the RBI. It also forms a part of the RBI’s vision of reviewing charges related to inbound cross-border remittances as given in Payment System Vision Documents.
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