Singapore's PayNow links up with India's UPI for real-time cross-border payments
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SINGAPORE: Singapore and India on Tuesday (Feb 21)Â launched a real-time link to facilitate cross-border fund transfers between bank accounts or e-wallets, using mobile phones.
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This is possible through a tie-up between Singapore's PayNow facility and India's Unified Payments Interface (UPI).
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Customers of participating financial institutions can transfer funds using just their mobile phone number, UPI identity or Virtual Payment Address.
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"The linkage provides customers with a safe, simple and cost-effective way to make cross-border fund transfers," said the Monetary Authority of Singapore (MAS) in a media release.
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In Singapore, the service will be made available in phases to customers of DBS and fintech company Liquid Group.
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For a start, selected DBS customers will be able to transfer funds of up to S$200 per transaction, capped at S$500 per day. By Mar 31, the service will be available to all DBS customers, who may transfer funds of up to S$1,000.
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In India, four banks - State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank - will facilitate both inward and outward remittances to begin with, while Axis Bank and DBS India will facilitate inward remittances.
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A user in India can remit up to 60,000 Indian rupees (US$725) a day for a start.
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The payments tie-up was officiated by Singapore Prime Minister Lee Hsien Loong and his Indian counterpart Narendra Modi at a virtual event.
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Cross-border retail payments and remittances between India and Singapore currently amount to more than US$1 billion annually, said Mr Lee.
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"The PayNow-UPI linkage will offer cheaper, faster and safer cross-border retail payments and remittances, for businesses and individuals alike, directly between bank accounts or e-wallet," he added.
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"As we progressively add more users and use cases, the PayNow-UPI linkage will grow in utility and contribute more to facilitating our trade and our people-to-people links."
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Cheng, I. (2023, February 21). Singaporeâs PayNow links up with Indiaâs UPI for real-time cross-border payments. CNA. https://www.channelnewsasia.com/business/paynow-upi-link-singapore-india-cross-border-fund-transfer-launched-3292961