Launch of UPI -PAY NOW linkage – Paving way to easier cross boarder remittance
Hon’ble Prime Minister of India, Shri Narendra Modi and Hon’ble Prime Minister of Singapore, Mr. Lee Hsien Loong were present during the launch of cross-border linkage between India and Singapore using their respective Fast Payment Systems, viz. Unified Payments Interface (UPI) and PayNow. The facility was launched through token transactions by Reserve Bank Governor, Shri Shaktikanta Das and Managing Director of Monetary Authority of Singapore, Mr. Ravi Menon using the UPI-PayNow linkage.
The UPI-PayNow linkage will enable users of the two fast payment systems in either country 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).
To begin with, 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. For Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution). More number of banks will be included in the linkage over time.
Customers of the above participating banks 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 ₹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 the currencies for convenience of the user.
The UPI-PayNow linkage is the product of extensive collaboration between Reserve Bank of India (RBI), Monetary Authority of Singapore (MAS), and Payment System Operators of both countries viz. NPCI International Payments Limited (NIPL) and Banking Computer Services Pte Ltd. (BCS), and participating banks / non-bank financial institution. This interlinkage aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments and will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore.
The list of banks in India, their UPI handles and platforms for receiving and sending remittances are as following:
| Receiving Remittances | Sending Remittances | |||
| Banks | UPI Handles Enabled | Featuring Apps | Banks | Apps / Internet banking |
| Axis Bank | @axisbank | Axis Pay | ICICI Bank | Internet banking |
| DBS Bank India | @dbs | DBS Digibank | Indian Bank | Mobile App (IndOASIS) |
| ICICI Bank | @icici | ICICI iMobile | Indian Overseas Bank | Internet banking |
| Indian Bank | @indianbank | IndOASIS | ||
| Indian Overseas Bank | @iob | BHIM IOB Pay | State Bank of India | Mobile App (BHIM SBI Pay) |
| State Bank of India | @sbi | BHIM SBI Pay | ||
Presently, the UPI ID registered with the same bank where account is held can only be used for this facility. There is a daily transaction limit of ₹60,000 in a day (equivalent to around SGD 1,000) for undertaking cross-border remittance transactions through the UPI-PayNow linkage. Only Person to Person (P2P) remittances for the purposes of “Maintenance of Relatives Abroad” & “Gift” are allowed. There is a provision of consent for receiving inward transactions through the linkage. An opt in / opt out feature in the apps of the participating banks in India for receiving the remittances from Singapore is provided for the same. The transactions through UPI-PayNow linkage can be carried out with ease similar to how the domestic transactions through UPI or PayNow take place, and the transaction can be completed within a minute. In the UPI-PayNow linkage transactions, only person to person (P2P) remittances towards the purpose of “Maintenance of Relatives Abroad” & “Gift” under the Liberalized Remittance Scheme (LRS) are allowed, and the prescribed LRS limits would be applicable.
Going forward, the UPI-PayNow linkage can be expected to cover more banks and financial institutions in India. The participating banks will be rolling-out an update in their respective UPI apps in a phased manner and the customers will have to update their UPI app so as to enable global remittances feature.
Source – RBI -Press release Dated 21’st Feb 20223
