By Consultants Review Team
Within the launch of the Real-Time payment Systems Linkage between India and Singapore today, customers of the participating banks will be able to make easy cross-border transactions between the two countries.
On Tuesday (February 21, 2023), Prime Minister Narendra Modi and Singapore PM Lee Hsien launched the cross-border linkage between the two countries using their respective fast payment systems – UPI and PayNow.
According to RBI, only the UPI ID registered with the same bank where the account is held can only be used for receiving remittances.
Further, only P2P (person-to-person) remittances will be allowed initially for the purposes of “Maintenance of Relatives Abroad” and “Gift”.
The RBI said that customers of the participating banks can undertake cross-border remittances to Singapore using the bank’s mobile banking app/internet banking.
Initially, an Indian user will be allowed to remit up to Rs 60,000 (SGD 1000) in a day. The RBI said that at the time of making the transaction, the system will dynamically calculate and display the amount in both the currencies for convenience of the user. According to a statement by the Reserve Bank of India, State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances. Axis Bank and DBS India will facilitate inward remittances (from Singapore to India). The RBI said that for Singapore users, the service will be made available through DBS-Singapore and Liquid Group (a non-bank financial institution).
The above is an initial list of participating banks. Soon, more banks are expected to be in the UPI-PayNow linkage.
The transactions will be completed within a minute. The RBI said, “The transactions through UPI-PayNow interlinkage can be carried out with ease similar to how the domestic transactions through UPI or PayNow take place, and the transaction can be completed within a minute.”
Yes. The Liberalised Remittance Scheme (LRS) limit will apply to this interlinkage while sending remittances from India.
“In the UPI-PayNow interlinkage transactions, only person-to-person (P2P) remittances towards the purpose of ‘Maintenance of Relatives Abroad’ & ‘Gift’ under the Liberalised Remittance Scheme (LRS) are allowed, and the prescribed LRS limits would be applicable,” RBI said.