Singapore residents can now transfer money to India through the Unified Payments Interface (UPI) starting today. This move is expected to ease the money transfer process for Singaporean residents who have family and friends in India.
The UPI is a real-time payment system developed by the National Payments Corporation of India (NPCI) that allows users to transfer money instantly between bank accounts via a mobile device. With this new feature, Singaporeans will be able to transfer money to any UPI ID or bank account in India using their mobile phones.
According to the Times of India, the Singaporean High Commission in India and the NPCI have collaborated to enable this new service. Singaporean residents will need to download the UPI app and register for the service. They can then link their bank accounts to the UPI app and start transferring money to India.
This move is expected to have a positive impact on the remittance market in India. India is one of the world’s largest recipients of remittances, with an estimated $83 billion in remittances in 2020, according to the World Bank. Singapore is also a major source of remittances to India, with an estimated $6.5 billion in remittances in 2020.
By enabling Singaporean residents to transfer money to India through UPI, the process is expected to be faster, cheaper, and more convenient for both the sender and the recipient. This could potentially lead to an increase in remittances to India from Singapore.
This move also highlights the increasing collaboration between India and Singapore in the fintech space. The two countries have been working together to promote digital payments and fintech innovation. In 2018, the NPCI signed a memorandum of understanding with the Monetary Authority of Singapore to collaborate on digital payments and fintech innovation.
In conclusion, the new feature allowing Singapore residents to transfer money to India through UPI is a welcome move that is expected to have a positive impact on the remittance market in India. With faster, cheaper, and more convenient money transfers, this could potentially lead to an increase in remittances from Singapore to India. This move also highlights the increasing collaboration between India and Singapore in the fintech space.
(With inputs from agencies)
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