Prime Minister Narendra Modi on Tuesday expressed hope that digital transactions will soon surpass cash as Unified Payments Interface (UPI) is increasingly becoming the most preferred payment mechanism in the country.
Modi after the launch of the cross-border connectivity between the UPI and PayNow of Singapore said about 74 billion transactions amounting to more than Rs 126 trillion, which is approximately 2 trillion Singapore dolla, was done through UPI in 2022.
“Many experts are estimating that very soon India’s digital wallet transactions are going to overtake cash transactions,” he said.
A large number of transactions via UPI demonstrate that this indigenously designed payment system is very secure, he said.
Modi along with his Singaporean counterpart Lee Hsien Loong witnessed the launch of cross-border connectivity between the UPI and PayNow of Singapore via video conferencing.
The first transaction was done by Reserve Bank of India Governor Shaktikanta Das and Monetary Authority of Singapore (MAS) managing director Ravi Menon.
The linkage of these two payment systems would enable residents of both countries in faster and cost-efficient transfer of cross-border remittances.
It will also help the Indian diaspora in Singapore, especially migrant workers and students, through instantaneous and low-cost transfer of money from Singapore to India and vice-versa.
India has emerged as one of the fastest-growing ecosystems for fintech innovation.
A key emphasis of the Prime Minister has been on ensuring that the benefits of UPI are not limited to India only but extend to other countries as well.