To facilitate quicker and more affordable cross-border remittance transfers, the Unified Payments Interface (UPI) of India and PayNow of Singapore will be connected. On February 21, cross-border connectivity would essentially be launched in front of Prime Ministers Lee Hsien Loong of Singapore and Narendra Modi of India.
Shaktikanta Das, governor of the Reserve Bank of India (RBI), and Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), will perform the launch, according to the Prime Minister’s Office. The launch will take place via video conference on Tuesday at 11 a.m.
The action will ensure that UPI’s advantages are not restricted to India alone, but extend to other nations as well. Workers who visit Singapore for a limited time and normally forego roughly 10% of the total as bank costs for money transfers will profit from UPI-PayNow.
The ecosystem for financial innovation in India is one of the fastest-growing.
The government of India, which is headed by Prime Minister Narendra Modi, has played a key role in advancing the internationalization of its digital payment system.
Making sure that UPI’s advantages are felt by other nations as well, in addition to India, has been a major focus of PM Modi’s.
According to an announcement from the Prime Minister’s Office, it will also benefit the Indian diaspora in Singapore, particularly migrant workers, and students, by enabling quick and inexpensive money transfers from Singapore to India and vice versa.
The Reserve Bank of India advocated allowing all foreign visitors to India to utilize UPI for their merchant payments while they are in the nation in light of the UPI payment system’s growing popularity.
In India, the UPI payments system has grown incredibly popular for retail digital payments, and usage is growing quickly.
The announcement was made on February 8 by the RBI governor as he was weighing the results of the three-day meeting of the monetary policy committee.
Travelers from G-20 nations would first be allowed to use the facility when they arrive at “certain international airports.”
According to the PMO, a link like UPI-PayNow could be used as a template for building an infrastructure for cross-border payments between India and Asian nations.