New Delhi: Starting Tuesday, India & Singapore have thrown open a combined UPI-PayNow service through which the residents of two nations can instantly transfer money & funds, in each other’s territory.
The cross-border real-time payment system was launched on Monday by RBI governor Shaktikant Das & Ravi Menon, managing director of the Monetary Authority of Singapore, in presence of PM Modi & his Singapore counterpart Lee Hsien Loong.
What UPI-PayNow integration means
The UPI-PayNow integration will enable citizens of both nations to exchange money in swift mode and will also reduce dependence on banks serving as ‘mediator’. Users can directly transfer money 24×7 by using multiple applications including Google Pay, PayTm & many other digital payment systems.
It will hugely benefit those workers who visit Singapore for a brief period as they lose about 10% of their emolument as bank fee, in getting funds transferred to native country.
The integration will also give a fillip to foreign remittances in both countries. Indian diaspora working in Singapore can use the cost-effective method of transferring money back home and vice-versa. Thousands of migrant workers, tourists & small businesses stand to gain from this path-breaking pact.
What is UPI?
United Payments Interface (UPI) is an instant payment service via which you can transfer funds & pay your bills via mobile phone. The quick fund transfer, enabled by UPI, has given a huge impetus to emergence & development of digital economy.
Developed by the National Payments Corporation of India (NPCI), the payment is also said to be ‘foolproof’ & devoid of loopholes as it requires virtual payment address only & no physical sharing of bank account details. Consumers can use this feature for both Person to person (P2P) as well as Person-to-Merchant (P2M) payments.
What is PayNow?
Akin to India’s digital payment system, PayNow is Singapore’s quick payment application. Using this feature, consumers can send & receive funds from one account to another in Singapore.
