Everything You Need to Know About UPI International Transfers

Indian UPI users can now send and receive funds from abroad with ease. But here is the catch; since international UPI payment is still a developing project, UPI services are only available in selected countries and are enabled only by a few banks. Keep reading to learn how UPI international money transfer works, how to send funds, and its benefits and drawbacks.

Also Read: Can Indian Travellers Use UPI Outside India?

Countries that Support UPI International Money Transfer

As of now, Singapore is the only foreign country from and to UPI money transfers are possible. This 24/7 real-time, cross-border peer-to-peer transfer is possible due to the UPI-PayNow linkage. ¹

What is UPI PayNow linkage?

Launched in 2023 by Indian Prime Minister Narendra Modi and Singapore Prime Minister Lee Hsien Loong, UPI-PayNow linkage is an initiative by the RBI (Reserve Bank of India) and MAS (Monetary Authority of Singapore). UPI's, this pioneer linkage for instant international money transfer is with PayNow, which is Singapore's legal, real-time payment system (like UPI in India). Through this linkage, UPI users and PayNow users can send money to each other instantly.

So, how is it done?

• UPI users in India can transfer money to PayNow users in Singapore by entering the receiver’s mobile number or Virtual Payment Addresses (VPA).

• PayNow users in Singapore can send money to UPI users in India by using the receiver’s UPI ID.

List of Indian Banks that Support UPI International Money Transfer

To use UPI for international money transfers to and from Singapore, the user’s Indian bank account must support UPI PayNow linkage. Given below are the Indian banks that currently allow UPI international money transfer between India and Singapore:²

For Sending Money to Singapore

1. ICICI Bank
2. Indian Bank
3. Indian Overseas bank
4. State Bank of India

For Receiving Money from Singapore

1. Axis Bank
2. DBS Bank India
3. ICICI Bank
4. Indian Bank
5. Indian Overseas Bank
6. State Bank of India

Pro Tip: Ensure that your UPI ID is registered with the same bank that is linked for UPI transactions. For instance, if your UPI ID is registered with SBI (username@sbi), your UPI debit and credit must be reflected in your SBI account itself. To make it simple, your UPI registered and linked bank account must support UPI PayNow linkage and must be the same.

List of Singapore Banks and NBFIs that Support UPI International Money Transfer

To utilise UPI for international money transfers to and from Singapore, the user’s account with a Singapore bank or non-bank financial institution (NBFI) must be compatible with UPI PayNow linkage. Below is a list of the Singapore banks and NBFIs that presently facilitate UPI international money transfers between India and Singapore:³

1. DBS Singapore
2. Liquid group

How to Send Money Abroad Using UPI?

1. Log in to your bank’s mobile banking.
2. Go to the foreign outward remittance section.
3. Enter the recipient’s mobile number (Singapore) or VPA address.
4. Follow the instructions, check the transaction summary, and complete your transaction.

How to Receive Money from Abroad Using UPI?

1. Ensure that your UPI ID is connected with a bank account that supports the UPI PayNow linkage.
2. Share you UPI ID with your sender in Singapore.
3. You shall instantly receive money in your UPI linked bank account, once the sender completes the transfer through their PayNow linked bank or NBFI account.⁴

Limitations of UPI International Money Transfer

1. Restricted to Singapore

UPI international money transfers are currently only supported in Singapore.

2. Limited Bank Support

Not all Indian and Singapore banks facilitate UPI international fund transfer.

3. Daily and Annual Transaction Caps

Rs. 60,000 (approximately SGD 1,000) is the daily transaction limit for international money transfer via UPI PayNow linkage. In addition to it, the transfers are also subjected to RBI’s LRS (Liberalised Remittance Scheme) annual limit of USD 250,000.

4.Remittance Purpose Constraints

The UPI PayNow linkage currently supports only person-to-person (P2P) international money transfers. Additionally, for UPI international money transfers, only “Family Maintenance” and “Gift Remittance” are allowed.

5. High Exchange Rate and Bank Charges

The exchange rate for the remittance is determined by your UPI linked bank account. It is a popular fact that banks charge high exchange rates which can range from 2% to even 5% of the amount sent. Moreover, banks impose transfer fees which can vary among banks. This makes UPI international money transfer, a costly choice. 

Also Read: Why Banks Charge High Fees on International Transactions—All Charges Explained

What is the Better Option than UPI International Money Transfer?

While UPI International money transfer can be quick, but for most Indians, it might not be a convenient and cost-effective choice. This creates disparities in access and forces some users to seek alternative money transfer methods, potentially less convenient and expensive.

Switching to online forex aggregators like ExTravelMoney offers you a better control over costs and flexibility. Let’s explore the advantages:

1. Firstly and most importantly, we offer outward remittance service to 100+ foreign countries.
2. Send money abroad for all LRS approved outward remittance purposes.
3. Transfer funds to foreign personal or business accounts. This means that you can send money to family members, friends, organisations, embassies, companies, universities, etc.
4. No matter which bank account holder you are, we can make easy outward remittance possible for you.
5. We impose no daily transfer limit. However, we adhere to the RBI LRS annual limit (USD 250,000).
6. And last but the most interesting advantage, we charge zero platform fees. Yes, you read it right! But wait, there’s something more exciting! With ExTravelMoney, you get the unique opportunity to compare top banks and RBI-authorised money changers near you. This means you can grab the best exchange rates and lowest bank fees available!

But in order to enjoy these amazing benefits, you need a bit more patience because Extravelmoney needs 4 to 48 hours to send money abroad. This is because we process transfers through the Society for Worldwide Interbank Financial Telecommunication, that is, SWIFT wire transfer, which follows a few protocols.

UPI international payments still need time to be available for everyone, so let’s look forward to the best. Meanwhile, enjoy the freedom to send money from any bank account to anywhere around the globe at the best exchange rates with ExTravelMoney. Remember, patience is the key!

Also Read: 6 Tips to Save Money on International Transfers: Expert Advice

Article Sources:

1. UPI Paynow FAQ ↩︎
2. NPCI Official List of Banks ↩︎
3. RBI UPI-PayNow Linkage FAQ ↩︎
4. UPI Inward Remittance Guidelines ↩︎

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