India’s Unified Payments Interface (UPI) and Singapore’s PayNow payment system have launched a real-time cross-border payment linkage, allowing NRIs residing in Singapore to make instant payments to their loved ones back in India. The move marks the first time such a payment link has been established and could potentially be explored with other countries in the future. The remittance from NRIs residing in Singapore alone exceeds $1 billion, making this an important export marketing tool. The real-time payment link is currently available for transactions that involve gift and maintenance of relatives abroad. Account holders of Indian Bank, Indian Overseas Bank, ICICI Bank, and SBI can receive and pay, while account holders of Axis Bank and DBS Bank can only receive. While only SGD 1,000 can be sent from Singapore, only INR 60,000 can be sent from India in a day. This payment linkage could also be useful for micro and small units from India, particularly for online retailers in handloom, handicrafts, jewelry, commercial samples, and service providers, among others. Additionally, medical tourists from these countries can use this option to pay for their medical bills in India.
