Digital payments will soon overtake cash transactions in India: PM Modi on UPI-PayNow link
The facility was launched through token transactions by Reserve Bank of India Governor, Shaktikanta Das and Managing Director of Monetary Authority of Singapore Ravi Menon using the UPI-PayNow linkage.
FollowPrime Minister Narendra Modi on Tuesday (February 21) said that digital transactions in India will soon surpass cash, as Unified Payments Interface (UPI) is increasingly becoming the most preferred payment mechanism in the country.
After the launch of the cross-border connectivity between the UPI and PayNow of Singapore, the Prime Minister said about 74 billion transactions amounting to more than Rs 126 trillion, which is approximately 2 trillion Singapore dollar, was done through UPI in 2022.
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"Many experts are estimating that very soon India's digital wallet transactions are going to overtake cash transactions. A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure," PM Modi said.
PM Modi, along with his Singaporean counterpart Lee Hsien Loong witnessed the launch of cross-border connectivity between the UPI and PayNow of Singapore via video conferencing.
The facility was launched through token transactions by Reserve Bank of India Governor, Shaktikanta Das and Managing Director of Monetary Authority of Singapore Ravi Menon using the UPI-PayNow linkage.
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In a statement, the RBI said, "The UPI-PayNow linkage 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."
"Funds held in bank accounts or e-wallets can be transferred to or from India using just the UPI-id, mobile number, or Virtual Payment Address (VPA)," it said. The statement further said State Bank of India, Indian Overseas Bank, Indian Bank and ICICI Bank will facilitate both inward and outward remittances, while Axis Bank and DBS India will facilitate inward remittances.
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"At the time of making the transaction, the system shall dynamically calculate and display the amount in both currencies for the convenience of the user," it said.
The UPI-PayNow linkage is the product of extensive collaboration between the RBI, Monetary Authority of Singapore (MAS), and Payment System Operators of both countries viz. NPCI International Payments Limited (NIPL) and Banking Computer Services Pte Ltd (BCS), and participating banks/non-bank financial institutions.
