Nowadays, people are able to send money for a number of things, such as maintenance for a relative or as a present. For its account users, six Indian banks will make inbound transfers easier, while four institutions would make outgoing transfers possible. At the Singapore end, banking arrangements have also been arranged.
For some time, both nations have been attempting to establish a reliable system for exchanging money. The citizens of both nations will benefit from an efficient system of money transfers.
Source: Reddit
The system was launched on a modest scale, with a daily transaction cap of Rs 60,000, or roughly $1000 in Singapore Dollars (SGD). The UPI-Pay Now setup is prepared to handle potential growth in the volume of remittances. Governments, corporations, institutions, and individuals all share close economic ties with Singapore and India. For the movement of money, people have used cumbersome, even illegal, ways. The new linkage will make the transactions more transparent and reduce the cost of remittances.
Around $1 billion is spent annually on cross-border retail payments and remittances between the two nations. It is necessary to send remittances to India from outside rapid and hassle-free because their volume has been continually growing. Around 9% of Singapore’s population is made up of members of the Indian diaspora. One of the nations with the greatest per capita incomes is Singapore. These are elements that will hasten the system’s development and improve results.
Source: Study IQ IAS
The connection between India and Singapore will serve as a model for creating similar networks connecting other nations. In 2021, Singapore and Thailand developed a similar payment link as part of a Southeast Asian push to connect local digital payment systems.
India can potentially expand its system to include other nations and gain from the connections. All sectors, including trade and tourism, will gain from the facilitation of free movement of capital, which will also encourage investment. It is a fundamental prerequisite for business convenience. With the aid of the most cutting-edge technology resources, it is necessary to strengthen international ties as the country’s profile as an economic and financial power rises. The nation has a functional, modern financial system, but additional external connections should be fostered.
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