Cross Border Payments: RBI's Nexus By FPSs

RBI and ASEAN Countries to Create a Platform to Facilitate Instantaneous Cross-Border Retail Payments

Project Nexus Phase 4 Launch and Signing Ceremony held at Basel, Switzerland on 30 June 2024. (from left) Governor Sethaput Suthiwartnarueput of Bank of Thailand, Governor Eli M. Remolona Jr. of Bangko Sentral ng Pilipinas, Governor Shri Shaktikanta Das of Reserve Bank of India, General Manager Agustín Carstens of Bank for International Settlements, Governor Datuk Abdul Rasheed Ghaffour of Bank Negara Malaysia, and Managing Director Chia Der Jiun of Monetary Authority of Singapore

FinTech BizNews Service

Mumbai, July 01, 2024: Reserve Bank of India has been collaborating bilaterally with various countries to link India’s Fast Payments System (FPS) – the Unified Payments Interface (UPI), with their respective FPSs for cross-border Person to Person (P2P) and Person to Merchant (P2M) payments. While India and its partner countries can continue to benefit through such bilateral connectivity of Fast Payment Systems, a multilateral approach will provide further impetus to our efforts in expanding the international reach of Indian payment systems.

The Reserve Bank of India has now joined the Project Nexus, a multilateral international initiative to enable instant cross-border retail payments by interlinking domestic FPSs. Nexus, conceptualized by the Innovation Hub of the Bank for International Settlements (BIS), aims to connect the FPSs of four ASEAN countries (Malaysia, Philippines, Singapore, and Thailand); and India, who would be the founding members and first mover countries of this platform.

An agreement to this effect was signed by the BIS and the central banks of the founding countries i.e., Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and Reserve Bank of India on June 30, 2024, in Basel, Switzerland. Indonesia, which has been involved from the early stages, continues to be involved as a special observer. More details are available in the video and the website of BIS.

 The platform can be extended to more countries, going forward. The platform is expected to go live by 2026. Once functional, Nexus will play an important role in making retail cross-border payments efficient, faster, and more cost effective.

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