The cross-border linkage between the Unified Funds Interface (UPI) of India and PayNow of Singapore was nearly launched on Monday in presence of Prime Ministers Narendra Modi and Lee Hsien Loong of Singapore. The cross-border hyperlink was launched by Financial Authority of Singapore (MAS) managing director Ravi Menon and Reserve Financial institution of India (RBI) governor Shaktikanta Das.
With the Actual-Time fee Programs Linkage, clients of taking part banks from each international locations will be capable to ship cross-border remittances extra conveniently, shortly, and securely. In accordance with RBI, solely the UPI ID registered with the identical financial institution the place the account is held can solely be used for receiving remittances.
UPI emerged as the preferred fee methodology in India with 74 billion transactions totalling greater than Rs126 trillion in 2022.
How a lot cash are you able to ship or obtain every day?
Clients of the taking part banks can undertake cross-border remittances to Singapore utilizing the financial institution’s cellular banking app/web banking.
To start with, an Indian person is allowed to remit as much as Rs 60,000 (SGD 1000) in a day. The system will dynamically calculate and show the quantity in each the currencies for comfort of the person on the time of the transaction, the RBI mentioned.
Checklist of Taking part Banks
State Financial institution of India, Indian Abroad Financial institution, Indian Financial institution, and ICICI Financial institution will facilitate each inward and outward remittances, in keeping with the RBI. Axis Financial institution and DBS India will facilitate inward remittances (from Singapore to India). For Singapore customers, the service might be made accessible by DBS-Singapore and Liquid Group (a non-bank monetary establishment).
Banks for receiving remittances by the UPI-PayNow interlinkage
Axis Financial institution
DBS Financial institution India
ICICI Financial institution
Indian Financial institution
Indian Abroad Financial institution
State Financial institution of India
Banks enabled for sending remittances by the UPI-PayNow interlinkage
ICICI Financial institution
Indian Financial institution
Indian Abroad Financial institution
State Financial institution of India
The above is an preliminary listing of taking part banks. Quickly, extra banks are anticipated to be within the UPI-PayNow linkage.
How a lot time transactions will take?
The transactions might be accomplished inside a minute. The RBI mentioned, “The transactions by UPI-PayNow interlinkage will be carried out with ease much like how the home transactions by UPI or PayNow happen, and the transaction will be accomplished inside a minute.”
What’s the restrict to sending cash?
The Liberalised Remittance Scheme (LRS) restrict will apply to this interlinkage whereas sending remittances from India.
“Within the UPI-PayNow interlinkage transactions, solely person-to-person (P2P) remittances in the direction of the aim of ‘Upkeep of Family Overseas’ & ‘Reward’ beneath the Liberalised Remittance Scheme (LRS) are allowed, and the prescribed LRS limits could be relevant,” RBI mentioned.
