A "real-time payment linkage" is now possible between Singapore's PayNow and India's Unified Payments Interface (UPI). India and Singapore joined their respective online payment systems on February 21, 2023, in a first-of-its-kind collaboration with another nation. This enabled frictionless cross-border transactions between the two nations.
The first nation with which cross-border P2P payment services have been introduced is Singapore. In order to enable immediate low-cost, cross-border fund transfers, the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) originally unveiled the proposal in September 2021. Initially, it was decided to have it operational by July 2022.
Prime Minister Lee Hsien Loong of Singapore and Prime Minister Narendra Modi of India both attended the virtual launch event. Residents of both nations would be able to send cross-border remittances more quickly and affordably if these two countries' payment systems will be linked.
Individuals in both nations will be able to send money in real-time via QR codes or just by entering their cell phone numbers and bank account information.
“This will help the Indian diaspora in Singapore, especially migrant workers/students and bring the benefits of digitalisation and FINTECH to the common man through instantaneous and low-cost transfer of money from Singapore to India and vice-versa,” the Ministry of External Affairs said.