India and Singapore are bolstering their collaboration in the realm of digital payments, expanding the scope of their landmark linkage between India’s Unified Payments Interface (UPI) and Singapore’s PayNow. This move is poised to facilitate cross-border remittances more efficiently and cost-effectively, with plans to include additional Indian banks in the network.
As of now, the partnership involves six Indian banks, namely Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and State Bank of India. These banks can both receive and send remittances through the digital payment link. However, the two nations are now looking to further amplify the reach of this initiative by adding eight more Indian banks to receive remittances from Singapore.
This expansion represents a significant step up from the initial bilateral tie-up announced earlier this year, in February, to facilitate the flow of remittances. The precise details of which Indian banks will be added to the network are yet to be disclosed.
The collaboration is facilitated by the National Payments Corporation of India (NPCI), which describes the initiative as providing a convenient, real-time, secure, and cost-effective means for customers of participating banks and non-bank financial institutions (NFIs) to transfer funds across borders. Users of the UPI in India can send money to Singapore’s PayNow members using the recipient’s mobile number or Virtual Payment Address (VPA). Conversely, users of Singapore’s PayNow can send funds to Indian UPI users using their UPI ID.
This development takes place in the context of India’s broader UPI export strategy, which aims to extend the reach of the Unified Payments Interface to multiple countries. Ritesh Shukla, CEO of NPCI International Payments, has stated that the number of countries where UPI is operational is expected to double within the next 12-18 months, highlighting the growing importance and adoption of digital payment systems in international financial transactions.
As both India and Singapore continue to strengthen their financial ties through digital payments, this expanded digital payment link is expected to enhance the ease and efficiency of cross-border transactions and remittances, benefiting individuals, businesses, and financial institutions in both countries.