Unified Payments Interface (UPI) has simplified digital payments structure in India to a great extent. The payment service allows users to make bank transactions within seconds without any extra cost. UPI is widely accepted in the country and slowly the payment method is expanding its borders. Even in India, UPI is not only limited to citizens. Reserve Bank of India (RBI) has extended UPI for in-bound travellers from G20 nations. Expanding the reach of UPI internationally, Prime Minister Narendra Modi and Prime Minister of Singapore, Lee Hsien Loong have launched a new service called UPI-PayNow. The new service is a cross-border linkage between India and Singapore through their respective Fast Payment Systems, viz. Unified Payments Interface (UPI) and PayNow.
What is UPI-PayNow and How will it work
As explained by RBI in a release, the UPI-PayNow linkage will allow users to make convenient, safe, instant, and cost-effective cross-border funds transfers using their respective mobile apps. Funds held in bank accounts or e-wallets can be transferred to / from India using just the UPI-id, mobile number, or Virtual Payment Address (VPA).
Which banks will offer UPI-PayNow service
In the beginning stage, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances while Axis Bank and DBS India will only facilitate inward remittances. For Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution).
UPI-PayNow transfer limits
Customers can undertake cross-border remittances to Singapore using the bank’s mobile banking app / internet banking. To begin with, an Indian user can remit up to Rs 60,000 in a day (equivalent to around SGD 1,000). At the time of making the transaction, the system shall dynamically calculate and display the amount in both currencies for convenience of the user.
