UPI to be linked to Singapore’s PayNow by July 2022

The Reserve Bank of India (RBI) on Tuesday said it is working on a project with the Monetary Authority of Singapore to link the Unified Payments Interface (UPI) with the city-state’s fast payments system PayNow. The linkage is targeted to be operational by July 2022. The linkage will enable users of each payment system to make instant, low-cost fund transfers on a reciprocal basis without getting on board the other system, the Indian central bank 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,” the RBI said. The linkage builds upon the earlier efforts of NPCI International (NIPL) and Network for Electronic Transfers (NETS) to foster cross-border interoperability of payments using cards and QR codes between India and Singapore. The linkage will further anchor trade, travel and remittance flows between the two countries, the RBI said. The initiative is also in line with the RBI’s vision of reviewing corridors and charges for inbound cross-border remittances outlined in the Payment Systems Vision Document 2019-21. In that document, released in May 2019, the RBI had observed that the cost of remitting funds is increasingly becoming a key element influencing the size of remittances.

News Source:- https://www.financialexpress.com/industry/banking-finance/upi-to-be-linked-to-singapores-paynow-by-july-2022/2330184/