• Unified Payments Interface is a real-time payment system developed by the National Payments Corporation of India that allows users to transfer money between bank accounts instantly using a mobile device. PayNow is a uniform system for digital transactions for users in Singapore
New Delhi: Prime Minister Narendra Modi witnessed the launch of cross-border connectivity of real-time digital payment systems through video conferencing with his Singaporean counterpart Lee Hsien Loong.
The integration between India's Unified Payments Interface (UPI) and Singapore's PayNow will allow people in both countries to make fast and affordable digital transfers.
Prime Minister Modi said that the linkage is a new milestone in India-Singapore relations. "The integration of UPI and PayNow marks a new milestone in India-Singapore relations and the beginning is a gift to the citizens of both countries."
“In today's age, technology connects us in many ways. Fintech is a sector that connects people to each other. Generally, it is confined within the borders of a country. But today's launch begins a new chapter of cross-border fintech connectivity," said the Prime Minister. "It will especially benefit our diaspora, professionals, students and their families."
The launch was also attended by Reserve Bank of India (RBI) Governor Shaktikanta Das and Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS). He also did the first transaction.
The linkage will help the Indian diaspora in Singapore, especially migrant workers and students, through quick and low-cost transfer of funds from Singapore to India and vice versa.
UPI, or Unified Payments Interface, is a real-time payment system developed by the National Payments Corp of India that allows users to transfer money between bank accounts instantly using a mobile device. PayNow is a similar system for digital transactions for users in Singapore.
PM Modi said, "UPI is the most preferred payment mechanism in India," with many experts predicting that digital wallet transactions will soon overtake cash transactions.
Modi said the large number of transactions through UPI demonstrate that this indigenously designed payment system is very secure.
The Prime Minister expressed hope that digital transactions would soon overtake cash as UPI is fast becoming the most preferred payment mechanism in the country. He also said that about 74 billion transactions amounting to over ₹126 trillion, which is about 2 trillion Singapore dollars, were to be done through UPI in 2022.
PM Modi thanked PM Lee for his partnership in taking India-Singapore relations forward and looked forward to working with him under India's G20 chairmanship.
“Singapore is the first country with which cross-border person-to-person (P2P) payment facility has been launched. This will help the Indian diaspora in Singapore, especially migrant workers/students and bring the benefits of digitization and fintech to the common man through instant and low-cost money transfer from Singapore to India and vice versa," Prime Minister's Office said in testimony.
According to the Ministry of External Affairs, around 6.5 lakh NRIs and Persons of Indian Origin are currently living in Singapore.
India has signed Memorandum of Understanding (MoU) with 13 countries that want to adopt UPI for digital payments.
The PMO said that a link like UPI-Penau can serve as a model for setting up infrastructure for cross-border payments between India and ASEAN countries. Such ASEAN cooperation on payments connectivity will benefit migrant workers, tourists, small businesses and enterprises.
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