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India to Singapore Fund Transfer: SBI integrated ‘BHIM SBIPay’ with UPI-PayNow linkage; Axis Bank Launches Cross Border Transactions

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SBI rolls out BHIM SBIPay for S'pore-India transfer after UPI-PayNow linkageOn February 22, 2023, the State Bank of India (SBI) integrated its mobile application ‘BHIM SBIPay’ with UPI-PayNow linkage to facilitate fund transfers from India to Singapore through registered mobile numbers and from Singapore to India using UPI (Unified Payments Interface) ID.

  • Backdrop: SBI was one of the banking partners which would carry out both inward and outward remittances through the UPI-PayNow linkage.
  • ‘Unified Payments Interface (UPI)’ is India’s mobile-based fast payment system for quick digital payments through apps like BharatPe and Paytm, and its equivalent network for fast payment system in Singapore called PayNow.
  • The PayNow-UPI linkage is India’s first cross-border, real-time system linkage and Singapore’s second.This initiative is a part of the joint initiative between the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) to develop cross-border payments between India and Singapore.

What is UPI-PayNow linkage?

i.It is a linkage between Fast Payment Systems of India and Singapore i.e. linkage between ‘UPI’ and ‘PayNow’ which will enable users of the two fast payment systems in either country to make convenient, safe, instant, and cost-effective cross-border funds transfers using their respective mobile apps.

ii.On 21 February 2023, the cross-border Fintech connectivity between India and Singapore through the UPI-PayNow linkage was launched by Prime Minister (PM) Narendra Modi, Singapore PM Lee Hsien Loong, and RBI (Reserve Bank of India) governor Shaktikanta Das.

iii.It is the product of collaboration between RBI, MAS and Payment System Operators of both countries i.e. the NPCI International Payments Limited and Banking Computer Services Pte Ltd.

Features of UPI-PayNow linkage

i.The UPI-PayNow linkage is the world’s first linkage featuring cloud-based infrastructure which allows peer-to-peer fund transfers through participating banks and other financial institutions.

ii.RBI Governor Shaktikanta Das and Monetary Authority of Singapore’s Managing Director Ravi Menon made the first live cross-border transaction through the UPI-PayNow linkage system.

iii.The service will be made available for Singapore users via DBS-Singapore and Liquid Group (a non-bank financial institution).Eight banks, including DBS, Liquid Group, Axis Bank and State Bank of India from Singapore and India are currently participating in the collaboration

iv.Under the linkage, Indian users can remit up to Rs 60,000 per day i.e. equivalent to around (Singapore Dollar) S$1,000.

NoteAt first, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank would facilitate both inward and outward remittances, using the UPI-PayNow linkage while Axis Bank and DBS India would facilitate inward remittances.

Additional info In accordance with the World Bank Bilateral Remittance Matrix December 2022, the inward bilateral remittance between Singapore and India is about $949 million as of 2021.

-Axis Bank launches cross border transactions via UPI-PayNow linkage

i.Now under the UPI-PayNow linkage, Axis Bank would act as the settlement bank for peer-to-peer foreign inward remittance transactions initiated through PayNow by the Liquid Group in Singapore.

ii.Axis Bank will settle the transactions to beneficiaries holding an account with or are registered on the UPI App of the six banks such as SBI, IOB (Indian Overseas Bank), Indian Bank, ICICI, DBS (Development Bank of Singapore), and Axis Bank.

Recent Related News:

According to the Indian Banks’ Association (IBA)’s report titled “EASE Reforms Index for the first quarter of FY23″(released on 10th November 2022), the State Bank of India(SBI) was adjudged as the Best Bank in adopting reforms prescribed for Public Sector Banks(PSB).

About State Bank of India (SBI):

Establishment – 1 July, 1955
Headquarters – Mumbai, Maharashtra
Chairman – Dinesh Kumar Khara