SBI, ICICI bank, 2 more banks to facilitate money transfer through UPI-PayNow link

Launch of UPI-PayNow linkage between India and Singapore

State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank have been selected to facilitate money transfer through the UPI-PayNow link between India and Singapore.

While these lenders will help in both inward and outward remittances, Axis Bank and DBS India will facilitate inward remittances only, the Reserve Bank of India (RBI) said in a release.

“More banks will be included in the linkage over time,” it said.

For users in Singapore, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution).

Customers of the selected banks can remit up to Rs 60,000 in a day, which is equivalent to around SGD 1,000, using the bank’s mobile banking app or internet banking.

“At the time of making the transaction, the system shall dynamically calculate and display the amount in both the currencies for convenience of the user,” the central bank said.

UPI is a system that allows multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing and merchant payments into one hood.

Prime Minister Narendra Modi and his Singapore counterpart Lee Hsien Loong on February 21 launched the cross-border linkage between the two nations using their respective Fast Payment Systems - India's Unified Payments Interface (UPI) and Singapore's PayNow.

The facility was launched through token transactions by Reserve Bank Governor Shaktikanta Das and Monetary Authority of Singapore Managing Director Ravi Menon using the UPI-PayNow linkage.

“Launch of the UPI-PayNow linkage is a gift to the citizens of the both countries. This facility will provide low-cost and real-time option of cross-border remittances between two countries. UPI is the most preferred mechanism for payments in India,” PM Modi said at the launch.

“This interlinkage aligns with the G20’s financial inclusion priorities of driving faster, cheaper and more transparent cross-border payments and will be a significant milestone in the development of infrastructure for cross-border payments between India and Singapore,” the RBI statement said.