In a first, India & Singapore link their online payment systems

India and Singapore have linked their respective online payments systems for seamless cross-border transactions between the two countries.

Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong participated in the virtual launch of real time payment linkage between the Unified Payments Interface (UPI) of India and PayNow of Singapore on Tuesday.

Reserve Bank of India Governor Shaktikanta Das and Monetary Authority of Singapore Managing Director Ravi Menon made live cross-border transactions to each other using their respective mobile phones.

Singapore is the first country with which cross border Person to Person (P2P) payment facility has been launched.

According to the Indian Prime Minister's Office (PMO), this will help the Indian diaspora in Singapore, especially migrant workers/students and bring the benefits of digitalisation and FINTECH to the common man through instantaneous and low-cost transfer of money from Singapore to India and vice-versa.

Acceptance of UPI payments through QR codes is already available in selected merchant outlets in Singapore.

In his remarks at the ceremony, Prime Minister Modi congratulated the citizens of Singapore and India and said that people-to-people ties are what have allowed India and Singapore's relationship to withstand time's trial.

According to him, today's launch has opened a new chapter in cross-border financial connectivity, given the fact that fintech also links individuals in various ways, but it often only does so inside national borders.

Speaking about the benefits of this linkage, PM Modi said that it would primarily assist students, professionals, NRIs, and their families since it will give individuals from both nations a low-cost real-time payment alternative and enhance remittance.

He continued by saying that over the previous few years, India had prioritized modernization and fostered an environment conducive to innovation. He added that the Digital India program had made it easier to live and conduct business, and it had improved digital connectivity and financial inclusion.

According to PM Modi, the Fintech sector in India is being driven by thousands of entrepreneurs, which is why it is leading the globe in real-time payments.

Finally, he said that while Fintech accomplishes the same within a nation as other forms of technology do, today's launch has opened a new chapter in cross-border fintech connection since it will enable individuals from both nations to conduct inexpensive cross-border financial transfers.

The virtual launch was preceded by a phone call between the two Prime Ministers, wherein discussions were held on areas of mutual interest. Prime Minister Modi thanked Prime Minister Lee for his partnership in taking the India-Singapore relationship forward and looked forward to working with him under India’s G20 Presidency, the PMO said.