Money transfers between India and Singapore using the unified payments interface (UPI) will start soon, and technical preparations to link UPI and PayNow have been completed. The move is aimed at benefitting migrant workers, according to an ANI report.
Central banks of both countries — the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) — are working to enable the service, which is expected to roll out soon.
“Singapore wants to connect its PayNow with UPI and that project will finish sometime in the next few months when that happens anybody sitting in Singapore will be able to send money to their family members in India,” India’s High Commissioner in Singapore P Kumaran said, according to news agency ANI.
Kumaran added that most Indian tourists who come here do not have a RuPay card, and even if they have it, they might have domestic RuPay card so it is a bit complicated. “So in future, we see a lot of people leaning to digitalisation not carrying a lot of cash, not dependent on international credit cards which have very high fees,” the report quoted the Indian High Commissioner as saying.
According to SBI Ecowrap, “Innovations in technology have changed the Indian payment system. Over the years, the Indian cash lead economy now has changed to a smartphone lead payment economy. A lower currency in circulation also is akin to a CRR cut for the banking system, as it results in less leakage of deposits and it will impact monetary transmission positively.”
It said that according to the latest retail digital transactions data, NEFT holds a share of 55 per cent in value terms and most of the transactions are done either at branch or through internet banking.
In October, transactions through UPI rose 7.7 per cent to 730 crore and the total value stood at more than Rs 12.11 lakh crore. In September, there were 678 crore UPI-led digital transactions worth Rs 11.16 lakh crore.
The number of instant interbank fund transfer through IMPS (Immediate Payment Service) in October stood at 48.25 crore and the value was at Rs 4.66 lakh crore. In terms of transactions, it was higher by 4.3 per cent compared to September, according to the latest monthly data from the National Payments Corporation of India (NPCI).
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