New Delhi: Indians in Singapore can now “receive instant, secure, and cost-effective remittances” directly into their bank accounts.
In a significant development, India’s Unified Payments Interface (UPI) has joined forces with Singapore’s PayNow, where users of popular apps like BHIM, PhonePe, and Paytm, along with clients of participating banks such as Axis, DBS India, ICICI, the SBI, Indian and Indian Overseas banks can seamlessly access this feature through their dedicated applications, according to a press release by the National Payments Corporation of India.
This collaborative initiative is also set for further expansion, with anticipated inclusion of third-party application providers (TPAPs) and additional banks such as Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Federal Bank, HDFC Bank, IDFC First Bank, IndusInd Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, South Indian Bank, and UCO Bank.
The UPI-PayNow linkage brings several advantages such as instant transfers where funds are transferred in real-time, reaching the recipient’s bank account within seconds. There will also be security assurance, convenience and cost-effective transactions for small and frequent remittances.
This interoperability is the result of a close collaboration between the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS). The increasing integration of UPI in cross-border transactions not only enhances financial inclusion and convenience but also plays a pivotal role in fostering the overall growth of India’s digital payment ecosystem.
Participating banks for Foreign Inward Remittance include Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and State Bank of India.
Additionally, two PayNow Singapore members participating in this initiative are DBS Bank and Liquid Group.
Indian customers must have a bank account that is active and eligible for accepting and sending cross-border payments. For those seeking to transfer money to Singapore, the sender requires the recipient’s registered PayNow mobile number or Virtual Payment Address (VPA).
The Unified Payments Interface (UPI) is an instantaneous payment system created by the National Payments Corporation of India in 2016. This interface enables seamless inter-bank transactions, both peer-to-peer and person-to-merchant, on mobile devices. It facilitates the swift transfer of funds between two bank accounts.
(Edited by Tikli Basu)
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