India’s Unified Payment Interface (UPI) and Singapore’s PayNow real-time payment system are likely to be linked with the integration expected to go live soon, reported Business Line.
This will allow users carry out instant, low cost fund transfers directly from one bank account to another, between India and Singapore.
It would bring down the remittance cost, said Sopnendu Mohanty, Chief Fintech Officer, Monetary Authority of Singapore, as mentioned in the report.
“Integration of UPI and Singapore’s PayNow is ready and is waiting for launch,” he said, speaking on the sidelines of the G20 First Working Group meet on global partnership for financial inclusion, the report added.
The integration will enable fund transfers to be made from India to Singapore using mobile phone numbers and from Singapore to India using UPI virtual payment addresses. The linkage will also help provide for increased volumes of remittance traffic, multi entity participation and automation of capital control rules, among others, as per the report.
Pramod Varma, CTO, EkStep Foundation, Chief Architect Aadhaar & India Stack, said similar integration and interoperability is also likely to happen with Dubai and a few other countries soon. Digital Public Infrastructure (DPI) must harness and align three key pillars — creating a level playing ground, driving innovation and competitiveness and productivity gains, he added.
However, the biggest issue in such integration is the legal hurdles and data sharing regulations, Mohanty said.
Three to four nations have already expressed their intent for adopting UPI, according to Dilip Asbe, MD & CEO, National Payment Corporation of India, added the report.