The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) today announced a project to link their respective fast payment systems. The linked interface is expected to be operationalised by July, 2022.
While India uses Unified Payments Interface (UPI) as a fast payment method, Singapore uses the PayNow system.
The RBI said in a release that UPI-PayNow linkage will enable users of each system to make instant, low-cost fund transfers on a reciprocal basis without a need to get onboarded onto the other payment system.
It added that the linkage will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore. It will also closely align with the G20's (an intergovernmental forum comprising 19 countries and the European Union) financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments.
The linkage builds upon the earlier efforts of NPCI International Private Limited (NIPL) and Network for Electronic Transfers (NETS) to foster cross-border interoperability of payments using cards and QR codes, between India and Singapore, said the RBI, adding that it will further anchor trade, travel and remittance flows between the two countries.
This initiative is also in line with the central bank's vision of reviewing corridors and charges for inbound cross-border remittances outlined in the Payment Systems Vision Document 2019-21.