The National Payments Corporation of India (NPCI) International is set to launch an expanded UPI-PayNow service, strengthening cross-border remittance connections between India and Singapore. The addition of 13 new Indian banks brings the total participating banks to 19, offering increased convenience and accessibility for users.
Background and Objective
- The UPI-PayNow linkage was introduced to simplify cross-border money transfers between India and Singapore.
- Users in both countries can now send and receive funds using just a mobile number or Virtual Payment Address (VPA).
- The service leverages India’s successful Unified Payments Interface (UPI) to make international transactions as seamless as domestic ones.
Recent Developments and Expansion
- 13 additional Indian banks, including HDFC Bank, ICICI Bank, and State Bank of India, have joined the UPI-PayNow network, expanding the service’s reach.
- The service is set to go live on July 17, 2025, enhancing financial connectivity between India and Singapore.
- It will particularly benefit the Indian diaspora in Singapore, facilitating quicker and simpler remittances.
Key Features and Technology
- The UPI-PayNow platform is the world’s first cloud-native, real-time international payment system.
- Transactions are completed within seconds, ensuring data security through robust encryption and compliance protocols.
- Direct bank transfers are enabled without the need for intermediary payment platforms, keeping costs low and processes efficient.
Impact and Significance
- The expanded UPI-PayNow linkage strengthens the economic relationship between India and Singapore.
- It sets a precedent for similar collaborations with other countries in the future.
- The system reduces remittance costs, promotes formal banking practices, and enhances cross-border payments for personal and business purposes.
Key Takeaways for Competitive Exams
- The UPI-PayNow service has expanded to include 13 more Indian banks, totaling 19 participating banks.
- Users in India and Singapore can now conduct real-time remittances conveniently and securely.
- The platform, utilizing cloud-based technology, ensures fast and secure international transactions.
- This initiative promotes financial connectivity between nations and encourages formal banking practices.
