UPI Goes Global - Chanakya Mandal Pariwar

UPI Goes Global


  • Recently, The Unified Payments Interface (UPI) of India and PayNow of Singapore have been integrated to allow faster remittances between the two countries.

About the UPI (Unified Payments Interface)

  • UPI is a real-time payment system that facilitates inter-bank transactions in India.
  • It was launched in 2016 by the National Payments Corporation of India (NPCI) as a part of the Digital India campaign.
  • UPI enables users to transfer money between bank accounts instantly using their mobile phones.
  • Users can link their bank accounts to a unique virtual payment address (VPA), created by the customer
  • It eliminates the need for entering account details such as bank account number and IFSC code

Significance of the linkage

  • Singapore is the first country with which cross-border Person to Person (P2P) payment facilities have been launched.
  • According to the ministry of external affairs (MEA) report Population of Overseas Indians (2022), there are presently 6.5 lakh Indians living in Singapore, including non-resident Indians and people of Indian origin.
  • According to the RBI (Reserve Bank of India) Remittance Survey, 2021, Singapore’s portion of the total inward remittances to India in 2020–21 was 5.7%.
  • The initiative is envisioned to have a significant positive impact on the Indian diaspora, particularly migrant workers and students in Singapore.
  • It will enable quicker and more affordable money transfers between the two nations without requiring them to adopt the other payment system.


  1. With reference to digital payments, consider the following statements: (2018)
  • BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
  • While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2