Title: Singapore interconnects with India's real-time payment system to facilitate cross-border transactions
The interconnection of real-time payment systems in India and Singapore has opened up new opportunities for financial transactions between the two countries. The Monetary Authority of Singapore (MAS) and the Reserve Bank of India (RBI) have successfully realised the interface between Singapore's PayNow and India's Unified Payments Interface (UPI), enabling financial institutions in both countries to transfer funds between e-wallets and bank accounts in real time.
As the world's first real-time payment system link, the PayNow-UPI system is built on a scalable cloud infrastructure that can handle future growth in remittance traffic. Not only does the system feature NBFCs, it is India's first real-time overseas payment link, positively impacting the Indian remittance market.
The Monetary Authority of Singapore has made PayNow-UPI available to non-banking financial institutions such as the Liquid Group and DBS Bank, and will gradually expand the service. In India, transactions will be facilitated by State Bank of India, Overseas Bank, Bank of India and others, and the list is expected to continue to expand.
The PayNow-UPI system will reduce the cost of remittances for foreign workers in Singapore and India and provide a more seamless payment experience for foreign merchants. With an annual remittance flow of US$1 billion between the two countries, the new payment system will open up more opportunities for trade and investment between the two countries.
Singapore has been an important source of FDI in India over the last two decades, contributing about 231 TP3T to the total FDI attracted to India.In addition, a large number of Indian talent has moved to countries like Singapore for well-paying jobs.
Real-time payment connectivity is becoming a growing trend in South-East Asia, with Singapore having established cross-border payment connectivity with Malaysia, Indonesia and Thailand. In the future, this network is expected to expand beyond South-East Asia to facilitate regional trade and investment.
The initiative would also help to increase financial inclusion among the unbanked and underbanked in South-East Asia. In order to achieve the goal of a $600 billion to $1 trillion digital economy in South-East Asia by 2030, bridging the financial gap is critical.
Atpay, as a professional payment solution provider who has been deeply involved in payment services in India for many years and has provided payment functionality to countless clients, is confident in payment integration and high-risk payment processing. We welcome inquiries and exchanges to discuss the future of the payments industry.
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