India Singapore launch UPI- PayNow link.

• UPI-PayNow integration will enable people in both countries to send money real-time via QR-code based or simply by entering mobile numbers linked to bank account.
• With this, Singapore became the first country to allow cross-border Person to Person (P2P) payment facility.
• Earlier, at selected merchant outlets in Singapore, UPI payments through QR codes were made available.
• Significance of UPI-PayNow linkage
  • Benefit Indian diaspora, especially migrant workers, and students by allowing faster and cost-efficient funds transfer.
  • Enable users to transfer funds instantly without the need to get on board the other payment system.

Other details

• PayNow is a fast payment system in Singapore. It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore
• UPI: It is a system that powers multiple bank accounts into a single mobile application merging several banking features, seamless fund routing & merchant payments into one hood.
  • It was developed by NPCI in 2016. UPI supports both P2P and Person-to-Merchant (P2M) payments.
• NPCI: It is an umbrella organisation for operating retail payments and settlement systems in India, established by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) in 2008 under the provisions of the Payment and Settlement Systems Act, 2007.
  • It has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013), with an intention to provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.