India to Establish Cross-Border Retail Payment Platform with Four ASEAN Countries
The Reserve Bank of India (RBI) announced on Monday its participation in Project Nexus alongside four ASEAN countries to establish a platform facilitating instantaneous cross-border retail payments. Nexus, initiated by the Bank for International Settlements’ Innovation Hub (BIS), aims to integrate India’s Unified Payments Interface (UPI) with the fast payment systems of Malaysia, the Philippines, Singapore, and Thailand. These nations, including India, will serve as the founding members and pioneers of this cross-border payment platform, according to the RBI.
The agreement was formalized on June 30, 2024, in Basel, Switzerland, involving BIS and the central banks of the founding countries: Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and RBI. Indonesia, actively engaged from the initial stages, continues to participate as a special observer.
RBI has been actively collaborating bilaterally to connect India’s Unified Payments Interface (UPI) with partner countries’ Fast Payment Systems (FPS) for facilitating cross-border Person to Person (P2P) and Person to Merchant (P2M) payments.
“While bilateral connections have benefited India and its partners, a multilateral approach through Nexus will further enhance our efforts to expand the global footprint of Indian payment systems,” stated the RBI.
The platform, slated for launch by 2026, is poised to significantly enhance efficiency, speed, and cost-effectiveness in retail cross-border payments, marking a pivotal advancement in international payment systems integration, as per the RBI.
