India To Create Cross-border Retail Payment platform with Nations By CIOTechOutlook Team

India To Create Cross-border Retail Payment platform with Nations

CIOTechOutlook Team | Monday, 01 July 2024, 10:08 IST

India has joined Project Nexus, a multilateral international effort to connect the payment systems of several nations and make instant cross-border retail payments. Nexus was conceptualized by the Innovation Hub of the Bank for International Settlements (BIS) to associate the installment frameworks of four ASEAN nations (Malaysia, Philippines, Singapore, and Thailand) and India, who might be the establishing individuals and first mover nations of this platform.

The agreement was signed on Sunday, June 30, 2024, in Basel, Switzerland, by the BIS and the central banks of the founding countries -- Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), and the RBI, according to a statement from the Reserve Bank of India (RBI).

Indonesia, which has been required from the beginning phases, keeps on being required as a unique spectator. According to the RBI statement, the platform might be made available to additional nations in the future. By 2026, the platform is expected to go live. Once functional, Nexus will assume a key part in making retail cross-line installments proficient, quicker, and more financially savvy. RBI has been partnering bilaterally with several countries to link India's digital public infrastructure -- Unified Payments Interface (UPI) -- with their respective counterparts for cross-border payments.

While bilateral connectivity of fast payment systems can continue to benefit India and its partners, a multilateral approach like Nexus will make such efforts to expand Indian payment systems and international reach.