India and Singapore launched a real-time payments system linkage on February 21. This new payments method is set to revolutionize the way cross-border payments are made between the two nations. In order to promote the new payment system, The State Bank of India has partnered in this cross-border facilitation and will offer the facility through its BHIM SBIPay mobile application. The linkage will allow fund transfers from India to Singapore through registered mobile numbers and from Singapore to India using UPI ID.
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The new payments system was launched by Prime Minister Narendra Modi, and the Prime Minister of Singapore, Lee Hsien Loong. This linkage will be powered by UPI and PayNow, the online payment system of Singapore. The first live cross-border transaction was executed by Shaktikanta Das, Governor, Reserve Bank of India, and Ravi Menon, Managing Director, Monetary Authority of Singapore. The RBI Governor used BHIM SBIPay for foreign inward remittance.
The State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank are some of the first banks to facilitate both inward and outward remittances while Axis Bank and DBS India will facilitate inward remittances.
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The cross-border payments between India and Singapore is also closely aligning with the G20’s priorities of driving faster, cheaper, and more transparent cross-border payments. As of 2021, the inward bilateral remittance between Singapore and India is around USD 949 Mn (as per World Bank Bilateral Remittance Matrix Dec ‘22).
Prime Minister Narendra Modi praised the initiative and said, “The linkage of these two payment systems between India and Singapore would enable residents of both countries to initiate a faster and more cost-efficient transfer of cross-border remittances. It will also help the Indian diaspora in Singapore, professionals, students, and workers through an instantaneous and low-cost transfer of money from Singapore to India and vice-versa.”
Dinesh Khara, Chairman, State Bank of India, said, “We are glad to be associated with this pathbreaking initiative. This will go a long way in boosting the digitization initiatives of the Government and provide easy, seamless cross-border payment facility to the users.”
