India counts Singapore as one of its most reliable and esteemed business partners. Around $1 billion in retail cross-border payments and remittances are made annually between the two nations.
Between 2016u201317 and 2020u201321, NRIs from the US, UK, and Singapore increased their contribution to remittances to India from 26% to over 36%. In addition, this small but wealthy Southeast Asian nation, with one of the highest GDP per capita in the world, is home to nearly 9% of the Indian diaspora. The UPI-PayNow interface is anticipated to be especially helpful to Indian students and migrant workers living in Singapore.
Indian users should have confidence in the profitability and dependability of the new endeavour given the ongoing success of PayNow’s rapid payment system connectivity with Thailand’s PromptPay, which was launched in April 2021.
Source: BYJU’S IAS
Together with decreasing tax evasion, digital payments are useful in bringing transparency to financial transactions and lowering the production of black money. PM Narendra Modi has predicted that digital transactions will soon eclipse cash payments in India, citing projections from experts. Yet, the fact that more than 99 percent of the money that was demonetised returned to banks reveals flaws in the infrastructure supporting cashless transactions. It is crucial to unlock the global potential of this unified interface with efforts to make UPI more robust and well-liked across the nation.
India should begin cheaper, quicker, and safer cross-border transactions with other nations as a result of the agreement with Singapore. This might help the world’s fastest-growing major economy realise its digital aspirations and enhance India’s reputation as a desirable investment destination.
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