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One of our bank partners for cross-border money transfer services is also part of the government’s CBDC program.
India’s nationwide payment network called Unified Payments Interface (UPI) Expanding We offer services across the Indian border to Singapore. Cross-border connectivity between Singapore and India via PayNow and UPI respective fast payment systems. Reserve Bank Governor Sri Shaktikanta Das and Singapore Monetary Authority Managing Director Ravi Menon have launched the facility through token trading using the UPI-PayNow linkage.
The integration of UPI and PayNow will enable users in both countries to send money quickly across borders. Send or receive money transfers from India using only your UPI ID, mobile number, or virtual payment address for money held in your bank account or electronic wallet (VPA). UPI’s instant real-time payment system helps you instantly transfer cash between two bank accounts via a mobile interface.
UPI goes global!
UPI has revolutionized the lives of Indians since it was introduced as a payment system in India, but the reality is that India’s digital payment system is steadily gaining global appeal and adoption in other countries. It has been.#India First #IndiaSingaporeRelations pic.twitter.com/55sGh5bzbZ
—MyGovIndia (@mygovindia) February 21, 2023
Initially, remittances will be facilitated by State Bank of India, Indian Overseas Bank, Indian Bank, and ICICI Bank, while remittances will be facilitated by Axis Bank and DBS India. DBS-Singapore and Liquid Group serve users in Singapore (non-bank financial institutions).
Related: Regulatory Implications of India’s Crypto Transaction Tax
Indian private bank ICICI Bank is also part of the country’s central bank’s digital currency program. India has started his CBDC pilot with his two phases. One he is for the wholesale market in November and one he is for retail users in December. Since the pilot began on December 1, 2022, the Digital Rupee pilot project has recorded 770,000 transactions involving eight banks. Five cities are already participating in the experiment, and he has nine more cities likely to participate in the experiment soon.
Satvic Vishwanath, CEO of Indian crypto exchange Unocoin, told Cointelegraph:
“This is a significant value addition for Indian payment rails, considering that nearly 30% of Singapore’s population are expatriates and send money to India once a month or quarter. It eliminates friction which saves time and money.”
India’s digital payments infrastructure has expanded dramatically over the past few years and became prevalent with the advent of Covid-19. The government is skeptical of the larger cryptocurrency market, but he imposed a 30% tax on cryptocurrency profits, after which major players were forced to leave the country. However, governments are keen to use blockchain technology for their CBDC programs, and existing infrastructure could help scale digital CBDC pilots as well.