With the mixing of those two fee methods, the Centre believes that it could permit residents of each nations to ship cross-border remittances extra rapidly and cheaply.
(Representational picture/Twitter)
Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong will witness the launch of cross-border connectivity between the Unified Payments Interface (UPI) and Singapore’s PayNow through videoconferencing on February 21
India and Singapore will launch a real-time fee methods linkage between the 2 nations on February 21. Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong will witness the launch of cross-border connectivity between the Unified Payments Interface (UPI) and Singapore’s PayNow through videoconferencing.
According to the federal government, Reserve Bank of India (RBI) governor Shaktikanta Das, and Ravi Menon, managing director of the Monetary Authority of Singapore, will lead the launch (MAS) of this cross-border connectivity.
Boost for remittances
With the mixing of those two fee methods, the Centre believes that it could permit residents of each nations to ship cross-border remittances extra rapidly and cheaply. Additionally, it’s anticipated to learn the Indian diaspora in Singapore, significantly migrant staff and college students, by permitting for immediate and low-cost cash transfers from Singapore to India and vice versa.
According to the ministry of exterior affairs (MEA) doc Population of Overseas Indians (2022), there are 6.5 lakh Indians residing in Singapore, together with non-resident Indians and individuals of Indian origin.
Important initiative
Mehul Mistry, Global Head-Strategy, Digital Financial Services & Partnerships at Wibmo, instructed News18 that Singapore is among the prime 4 inward remittance markets. It accounts for roughly 5.7% of all remittances to India or roughly $5.08 billion of the $100 billion complete inward remittance market.
“This initiative will have several advantages such as customers outside India (in Singapore) will experience world-class payment infrastructure. This will witness the globalisation of India’s best-in-class digital payment infrastructure,” he mentioned.
Mistry believes that residents of each nations will be capable of make sooner and cost-effective cash actions between the 2 nations and so they additionally will be capable of make service provider funds utilizing Scan QR companies.
Chirag Taneja, the co-founder of Gokwik, believes that this is among the most iconic moments on the earth of cross-border e-commerce.
“With UPI and PayNow coming together, they are paving way for digital-first transactions to seamlessly expand the horizon,” he said. This new connection will empower businesses and individuals with frictionless transactions beyond borders, making international commerce more accessible and convenient than ever before, Taneja added.
From a business perspective, he said: “Businesses also face five major challenges such as cost, security, time, liquidity, and transparency while making cross-border payments. This initiative will further solve most of these problems, allowing more businesses to expand their reach in other markets.”
Dileep Seinberg, founder and CEO of MuffinPay, said that this initiative will open a new gateway for UPI-enabled Fintech platforms. He also believes that “undoubtedly this initiative will act as a strong catalyst, bringing about a profound change in how payments and purchases are made around the world”.
A spokesperson of mobile payments service Paytm told News18: “We welcome UPI-PayNow real-time payment systems linkage between India and Singapore, which will enable low-cost, instantaneous, and 24X7 fund transfer. We will continue to innovate to ensure support and earliest availability of such UPI-based cross-border payments for all.”
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