The Indian Central Bank announced on September 14 that, “The Reserve Bank of India (RBI) has tied up with the Monetary Authority of Singapore (MAS) to link its Unified Payments Interface (UPI) with Singapore’s PayNow for instant money transfer,” reported Moneycontrol news.
Commenting on the same, the Reserve Bank of India said, “The UPI-PayNow linkage is a significant milestone in the development of infrastructure for cross-border payments between India and Singapore, and closely aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.”
PayNow, the digital peer-to-peer money transfer service which is specially built for retail customers by contributing to Singapore’s banks and non-bank financial institutions (NFIs). The RBI, further said: It allows users to send and receive funds from a bank or an e-wallet account by using just a mobile number, Singapore NRIC/FIN, or VPA (virtual payment address).
UPI has gradually emerged as the country’s first-ever mobile-based quick payment system for exchange. This system permits its users to make ’round-the-clock payments’ on an immediate basis with no intrusion from external sources. Customers just need to create a VPA and use this in future for making transactions.
Addressing the safety and privacy measures of the set-up, the RBI asserted, “This eliminates the risk of sharing bank account details by the remitter. UPI supports both Person to Person and Person to Merchant payments as also it enables a user to send or receive money.”