SINGAPORE (Reuters) - The central banks of Singapore and India have agreed to link the payment services PayNow and the Unified Payments Interface (UPI) by July next year, Singapore's central bank said in a statement on Tuesday.
The linkage between Singapore's PayNow and India's UPI will enable users to make instant and low-cost fund transfers directly from one bank account to another between the countries, Singapore's central bank Monetary Authority of Singapore (MAS) said.
Once implemented, users in India can transfer funds to Singapore using a mobile phone number, while transfers can be made from the city-state to India via UPI virtual payment addresses.
"By reducing the cost and inefficiencies of remittances between Singapore and India, the PayNow-UPI linkage will directly benefit individuals and businesses in Singapore and India that greatly rely on this mode of payment," said Sopnendu Mohanty, Chief FinTech Officer of MAS.
(Reporting by Chen Lin in Singapore; Editing by Ed Davies)