In a landmark agreement, the Reserve Bank of India (RBI) and four ASEAN countries have committed to the creation of a platform designed to facilitate instant cross-border retail payments. The platform, expected to be operational by 2026, is part of Project Nexus, a multilateral international initiative conceived by the Innovation Hub of the Bank for International Settlements (BIS).
Project Nexus aims to interlink the domestic fast payment systems (FPSs) of Malaysia, the Philippines, Singapore, Thailand, and India, which will serve as the founding members and first mover countries of this innovative platform. The agreement was signed in Basel by the BIS and the central banks of the participating countries — Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and RBI. Indonesia, having been involved from the early stages, continues its participation as a special observer.
The RBI highlighted that the platform has the potential for expansion, with more countries able to join in the future. Once functional, Nexus is set to revolutionize retail cross-border payments by making them more efficient, faster, and cost-effective.
This initiative aligns with the RBI’s ongoing efforts to enhance the international reach of India’s payment systems. The RBI has been actively collaborating bilaterally with various countries to link India’s FPS, Unified Payments Interface (UPI), with their respective systems 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 the efforts in expanding the international reach of Indian payment systems,’ the RBI stated.
The successful implementation of Project Nexus is poised to significantly enhance global retail payment infrastructure, fostering greater financial inclusion and economic integration across the participating nations.
