The Reserve Bank of India (RBI) announced its participation in Project Nexus, joining four ASEAN countries to establish a platform for instantaneous cross-border retail payments. Nexus, conceptualized by the Bank for International Settlements (BIS) Innovation Hub, aims to connect India’s Unified Payments Interface (UPI) with the fast payment systems of Malaysia, Philippines, Singapore, and Thailand.

These five nations will be the founding members and first-movers of the platform. An agreement was signed on June 30, 2024, in Basel, Switzerland, by the BIS and the central banks of the founding countries: Bank Negara Malaysia, Bank of Thailand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, and the Reserve Bank of India. Indonesia remains involved as a special observer.

The RBI has been working bilaterally with various countries to link India’s Fast Payments System (FPS) with their respective systems for cross-border Person to Person (P2P) and Person to Merchant (P2M) payments. The RBI noted that while bilateral connectivity is beneficial, a multilateral approach will further expand the international reach of Indian payment systems.

The platform, expected to go live by 2026, aims to make retail cross-border payments more efficient, faster, and cost-effective. This initiative reflects India’s commitment to enhancing its global payment infrastructure and fostering economic ties with ASEAN countries.

Source: NDTV