India, Singapore launch online payment in first-of-its-kind collaboration

In India's first-of-its-kind collaboration with another country, India and Singapore have linked their respective online payment systems - Unified Payments Interface (UPI) of India and PayNow of Singapore - for seamless cross-border transactions between the two countries, reported ANI. The major announcement was made on February 21 during the virtual launch that was attended by Prime Minister Narendra Modi and his Singaporean Prime Minister Lee Hsien Loong. Apart from Prime Minister Narendra Modi, Shaktikanta Das, governor of the Reserve Bank of India (RBI), and Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), also participated in the virtual launch. 

Taking to Twitter, PM Modi wrote: "A new milestone in India-Singapore relations as we link real-time digital payments systems." 

A new milestone in India-Singapore relations as we link real-time digital payments systems. 🇮🇳 🇸🇬 https://t.co/SubBSNyMO8

— Narendra Modi (@narendramodi) February 21, 2023

India and Singapore online payment

India has been seen as one of the fastest-growing ecosystems for fintech innovation and has been working towards the globalisation of India's digital payment infrastructure. This new development between the two countries would enable residents of both countries to the faster and more cost-efficient transfer of cross-border remittances. The people in their respective countries would be sending money in real-time via QR-code based or simply by entering mobile numbers linked to the bank account.

"The linking of fintech services between India and Singapore will take the technology to a new level," said PM Modi  while addressing the virtrual launch event. Further, he added, "It will provide low-cost real-time platform for remittance transfers to people in both countries."

The new development in the online payment system would also help the Indian diaspora in Singapore, especially migrant workers, and students, instantly transfer money from Singapore to India and vice-versa at a low cost. UPI payments system facility would be given to travelers from G-20 countries arriving at "select international airports". The hugely popular retail digital payments in India have been adopted increasingly at a rapid pace.