Shri Shaktikanta Das, governor of the Reserve Bank, and Mr. Ravi Menon, managing director of the Monetary Authority of Singapore, launched the facility through token transactions using the UPI-PayNow linkage.
How UPI- PayNow will help customers of India and Singapore
The UPI-PayNow integration will allow users of the two quick payment systems in either nation to send money across borders quickly, securely, and affordably via their respective mobile apps. It is possible to send or receive money from India using only a UPI-id, cellphone number, or Virtual Payment Address for money held in bank accounts or e-wallets (VPA).
Indian banks eligible for remittances
According to the RBI press releases, “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 banks will be included in the linkage over time.”
Limit to sending money to Singapore
Customers of these participating banks can send money across borders to Singapore via the bank’s internet banking or mobile banking app. An Indian user can initially send up to Rs 60,000 in one day (equivalent to around SGD 1,000). For the user’s convenience, the system shall dynamically calculate and show the amount at the time of the transaction in both currencies.
According to the RBI press release, “ 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 institutions. 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.”
According to the NPCI website, important FAQs to know before.
What is UPI?
Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. UPI is built to instantly transfer money between any two parties’ accounts.
What is a UPI ID?
UPI ID (also called Virtual Payment Address or VPA) is a unique ID for using UPI. The UPI Id can be created by registering with one of the UPI enabled mobile applications (App) using your bank account details.
How can I view my transaction history?
Go to Home Screen ->Transaction History, to view all your past and pending transactions.
Does a customer need to register before remitting funds using UPI?
Yes, a customer needs to register with his/her PSP before remitting funds using UPI and link his accounts.
What happens if my mobile phone is lost?
In case of mobile loss, one needs to simply block his mobile number thus no transaction can be initiated from the same mobile number which is a part of device tracking and at the same time UPI pin would be required for any transaction which is not to be shared with anyone.