On Tuesday, Prime Minister Narendra Modi and Singaporean counterpart Lee Hsien Loong are set to launch and connect the Unified Payments Interface (UPI) of India with PayNow of Singapore.
This linkage will facilitate faster and more efficient transfer of border remittances between the two countries. The launch will take place via video conferencing and will be presided over by Shaktikanta Das, Governor, Reserve Bank of India (RBI), and Ravi Menon, Managing Director, Monetary Authority of Singapore (MAS).
The Indian government has been instrumental in driving the globalisation of India’s digital payment infrastructure and ensuring that the benefits of UPI are not limited to India only. The move is expected to help the Indian diaspora in Singapore, particularly migrant workers and students, with instantaneous and low-cost transfer of money from Singapore to India and vice-versa.
The Reserve Bank of India also proposed to permit all inbound travellers to India to use UPI for their merchant payments while they are in the country, considering the popularity of the UPI payment system for retail digital payments in India.
How UPI and PayNow payment system integration will help Indian economy?
The launch and linkage of India’s Unified Payments Interface (UPI) and Singapore’s PayNow payment system marks a significant milestone in cross-border financial transactions. This move is expected to increase the efficiency and speed of cross-border remittances for residents of both countries.
The announcement comes as no surprise, given that India has been at the forefront of fintech innovation in recent years. Under the leadership of Prime Minister Narendra Modi, the country has driven the globalization of its digital payment infrastructure, making it one of the fastest-growing ecosystems for fintech innovation.
The benefits of UPI are not limited to India alone, as the Prime Minister has emphasized the need to extend it to other countries as well. This move is expected to help the Indian diaspora in Singapore, especially migrant workers and students, through instantaneous and low-cost transfer of money from Singapore to India and vice versa.
It is worth noting that the popularity of UPI payment system has been on the rise in India. The Reserve Bank of India has proposed to permit all inbound travellers to India to use UPI for their merchant payments while they are in the country.
The linkage of UPI and PayNow payment systems is a significant step towards achieving the goal of global financial inclusion. This move will benefit millions of people in India and Singapore, facilitating faster and more efficient transfer of funds across borders.
Furthermore, it will help to promote economic growth and cross-border trade between the two countries, creating new opportunities for businesses and individuals alike.