UPI and PayNow Linkage, first step towards global digital payment methods

Published : 22 June 2023
Updated : 24 May 2024
UPI and PayNow Linkage, first step towards global digital payment methods

Introduction

Recently, there is a tie-up in the UPI Network between two countries India and Singapore. This is the first step to global digital payments. It will be fruitful for the people. 

 On Tuesday, India and Singapore integrated the Unified Payment Interface (UPI) network with Singapore's PayNow, enabling rapid financial transfers between customers in both countries at a considerably lower cost than using banks.

 "Today's launch of UPI-Pay Now Link is a long-awaited gift for citizens of both countries." This service would allow for a more affordable and real-time option for remittances between the two countries. This would assist our abroad brothers and sisters, professionals, students, and their families in particular," Prime Minister Narendra Modi said at the inauguration event, which was attended by Singaporean Prime Minister Lee Hsien Loong and central bankers from both nations.

 The link will allow Indians to transfer up to Rs 60,000 (SGD 1,000) every day, with a similar mechanism in the works for transactions with other countries. Cross-border retail payments.

 According to RBI deputy governor T Rabi Sankar, establishing quick payment networks across borders is part of the G20 aim to reduce the cost of cross-border remittances. He stated that today, transactions are made through banks, but they come at a fee and take time because India has capital controls. Such connections, he argued, would make transfers more efficient and less expensive.

 Money in bank accounts or e-wallets can be transferred using a UPI ID, cellphone number, or Virtual Payment Address (VPA) once the link is established.

 The government has been promoting UPI as a vehicle for digital transactions, and Modi stated on Tuesday that 7,400 crore transactions worth Rs 125 lakh crore will take place by 2022. “This shows how easily and securely India’s UPI system handles large numbers,” he said while adding that some experts were predicting that volumes could surpass cash transactions in the coming years.

 

Conclusion 

Interlinking of the India UPI System and the Singapore UPI system is the first step towards a global digital payments setup. It will make the strenuous task of international payments easier. This recent step taken by the government will work in favor of the common man.