NPCI Launches UPI-Enabled Remittances from Singapore to India

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The National Payments Corporation of India (NPCI) revealed that the Indian diaspora residing in Singapore can now seamlessly transfer remittances directly into the bank accounts of recipients in India. This feat has been achieved through a cross-border integration of the Unified Payments Interface (UPI) with Singapore’s PayNow.

Initially, the service is accessible to users of Paytm, BHIM, and PhonePe, as well as customers using applications from banks such as Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and State Bank of India.

On the Singaporean front, DBS Bank Singapore and Liquid Group have emerged as key participants in this UPI linkage.

The press release indicates that HDFC Bank, Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Federal Bank, IDFC First Bank, IndusInd Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, South Indian Bank, and UCO Bank are expected to join this linkage shortly.

Highlighting the advantages of utilizing the UPI route, NPCI emphasized that the remittance process will be instantaneous, secure, available 24/7, and feature competitive transaction fees, facilitating even small and frequent remittances.

The NPCI underscored that this interoperability is the outcome of a close collaboration between the Reserve Bank of India (RBI) and the Monetary Authority of Singapore. The growing adoption of UPI in cross-border transactions is seen as a significant step towards enhancing financial inclusion and playing a pivotal role in bolstering India’s dynamic digital payment ecosystem.

Adding to the positive developments, December 2023 witnessed a noteworthy surge in UPI payments, with the total monthly transaction amount reaching ₹18.23 lakh crore. In terms of transaction volume, December marked a historic high of 12.02 billion transactions, surpassing the November 2023 figures of ₹17.40 lakh crore and 11.24 billion transactions, respectively.