reflexes
UPI creates a virtual payment address (VPA) for each payment.
PayNow also works more or less along the same lines.
Retail transactions between the two countries have become safer and cheaper.
New Delhi. India’s digital payment system UPI (UPI) and Singapore’s PayNow payment system have been linked by both countries. Under the leadership of Prime Minister Narendra Modi, Reserve Bank Governor Shaktikanta Das and Singaporean Prime Minister Hiuen Long launched it on Tuesday. Although both countries had started the project to link this system in the year 2021, now this installation has finally started. The question arises how the common man will benefit from this project and what is its meaning.
First of all, we have to understand what UPI and Penau are after all. Unified Payment Interface i.e. UPI is India’s mobile based payment system which provides customer with 24 hour payment service. UPI creates a Virtual Payment Address (VPA) for each payment, allowing person-to-person or person-to-merchant payments to be completed risk-free. PayNow also works more or less along the same lines and completes the process of transferring funds through Singapore’s banks and non-bank finance companies. Through this system in Singapore, customers can send or receive funds from their bank account or e-wallet to others via mobile. This procedure is carried out through the National Registry Identity Card or Foreigner Identification Number.
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What is the meaning of uniting both?
Retail payments between two countries are not very transparent, on the other hand, they become expensive due to the high fees in such transactions. Due to the UPI-PayNow link, a direct solution to this problem has been found. Now Indian citizens will be able to easily make retail payments in Singapore, so Singaporeans can send money to the Indian market without any problem. That is, retail transactions between the two countries have become safer, easier, transparent and cheaper.
How will the common man benefit
With the introduction of this payment system, it has become easier for people doing business, visiting or working in Singapore. If you are visiting Singapore, you will be able to make UPI payments at retail outlets without any hassle. Apart from this, thousands of Indians work in Singapore, now it is easier and cheaper for them to send money back home. Not just this, it has become easier for Indian students studying in Singapore to earn money from home.
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According to data from the Reserve Bank, every year people send crores of rupees from Singapore to their homes in India. If we look at the figures for the year 2021, Singapore alone concentrates 5.7% of the total remittances sent from abroad to India.
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Tags: business news in hindi, digital payment, Digital transaction in India, RBI Governor, oops
FIRST POSTED: Feb 21, 2023 1:09 p.m. IST
