India’s real-time retail payment system Unified Payments Interface (UPI) has been linked with its equivalent network in Singapore called PayNow to enable faster remittances between the two countries. With this, people in both countries can send money in real-time. But how it will work and is there any limit on the fund that one can send now? Here's an FAQ answering all queries you might have:
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How it will work?
With this facility, funds held in bank accounts or e-wallets can be transferred to/from India using just the UPI ID, mobile number, or VPA. It will eliminate the need for having to enter the details of the beneficiary, such as bank account number, bank code etc.
In order to add a beneficiary to initiate a first-time transfer of funds usually takes several hours for the activation of services. However, with this payment facility, both inward and outward remittances will happen instantly with just a VPA or UPI ID, said Mandar Agashe, MD at Sarvatra Technologies ltd.
Which are the participating banks?
In India, only 5-6 banks are a part of this current India-Singapore cross-border payment network. "We expect more banks to join in," said Supratik Nag Vice President at Product Management Maveric Systems.
To begin with, the 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 facilitate inward remittances. The Reserve Bank of India (RBI) said that for Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution).
Customers of these banks will be able to undertake cross-border remittances using the bank’s mobile banking app/internet banking.
What is the per-day transfer limit?
Currently, RBI has put a per-day transfer limit for Indian users of Rs 60,000 (equivalent to around SGD 1,000), which may be revised later.
The RBI said that at the time of making the transaction, the system will dynamically calculate and display the amount in both the currencies for convenience of the user.
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How much time it will take?
According to RBI, the transactions through UPI-PayNow interlinkage can be carried out with ease similar to how domestic transactions through UPI or PayNow take place, and the transaction can be completed within a minute.
How will the linkage benefit?
According to Anand Kumar Bajaj, founder, MD and CEO at PayNearby, the linkage enhances the gamut of opportunities that the UPI ecosystem currently offers to its users. Since this is a new payment facility, its success will also depend on the guidance and assistance that the customers in Singapore might need.
As per Akash Sinha, co-founder and CEO at Cashfree Payments, this is a crucial development in the nation's cross-border imperative and the connectivity between the two payment systems will make cross-border remittances more convenient, quick and cost-efficient.
"This will bolster trade and remittance flow and will significantly benefit migrant workers, tourists, small businesses, and enterprises. This will also establish a significant foundation for cross-border payments between India and ASEAN countries, creating a favourable environment for digital payments beyond borders. In the grand scheme, this creates an enabling environment for innovators and regulators to accelerate the delivery of effective digital payments solutions," Sinha said.
Hailing the move, Vishwas Patel, ED at Infibeam Avenues Ltd, said that this enormously simplifies the instant money transfer between both nations’ citizens. "It’s a global feat, and would like to applaud the National Payments Corporation of India (NPCI) for making India’s UPI a truly global payment system," Patel said.
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First Published: Feb 22, 2023 11:37 AM IST
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