Major Unified Payments Interface (UPI) apps such as BHIM, PhonePe, and Paytm have now been enabled to receive remittances from Singapore through the UPI-PayNow linkage, as announced by the National Payments Corporation of India (NPCI) on Thursday, January 11. Furthermore, various banks, including Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank, and State Bank of India, offer this functionality through their respective apps.
This new feature allows Indians to receive remittances directly into their bank accounts from the Indian diaspora based in Singapore. Third-party application Providers (TPAPs) and bank apps such as Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, Federal Bank, HDFC Bank, IDFC First Bank, IndusInd Bank, Karur Vysya Bank, Kotak Mahindra Bank, Punjab National Bank, South Indian Bank, and UCO Bank are expected to be added to the linkage in the near future, expanding the choices available to customers.
Key Benefits of Receiving Funds via UPI-PayNow:
Instant: Funds are transferred in real-time, reaching the recipient's bank account within seconds.Secure: The linkage utilizes robust security protocols to ensure safe and reliable transactions.Cost-effective: Transaction fees are competitive, making the service ideal for small and frequent remittances.Convenient: The facility is available 24/7, 365 days a year.
This interoperability achievement results from the close collaboration between the Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS). The increasing adoption of UPI in cross-border transactions not only enhances financial inclusion and convenience but also plays a pivotal role in fostering the overall growth of India's dynamic digital payment ecosystem.
Steps to Transfer Money From India to Singapore via Mobile Number or VPA:
1. Log in to your bank’s net-banking or mobile banking account.2. Go to Foreign Outward Remittance and agree with the terms (a one-time activity).3. Enter the beneficiary’s Singapore mobile number or VPA proxy (virtual payment address), e.g., +6512345678#XXXX.4. Follow the instructions, check the summary, and submit the transaction.
The exchange rate will be determined by the participating banks used for initiating the transfer, and you will be able to see the applicable rate upfront before submitting the remittance.