RBI Joins Project Nexus to Link UPI with 4 ASEAN Countries for Instant Cross-Border Payments

By siliconindia  |  Monday, July 1, 2024

RBI Joins Project Nexus to Link UPI with 4 ASEAN Countries for Instant Cross-Border Payments
The Reserve Bank of India (RBI) has entered into an agreement to participate in Project Nexus alongside four ASEAN countries, aiming to establish a platform for seamless cross-border retail payments.
Project Nexus, developed by the Innovation Hub of the Bank for International Settlements (BIS), will integrate India’s Unified Payments Interface (UPI) with the fast payment systems of ASEAN members - Malaysia, Philippines, Singapore, and Thailand. These nations, alongside India, are set to be the founding members and pioneers of this groundbreaking initiative, according to an RBI statement.
The agreement, signed on June 30, 2024, in Basel, Switzerland, involved the 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 the RBI. Indonesia, having participated since the initial stages, remains involved as a special observer.
RBI highlighted its ongoing bilateral collaborations with various countries to link India’s Fast Payments System (FPS) - specifically UPI - with their respective FPSs for cross-border Person to Person (P2P) and Person to Merchant (P2M) payments. However, the multilateral approach of Project Nexus is expected to significantly enhance the international reach and efficiency of Indian payment systems.
The platform, slated to be operational by 2026, promises to streamline retail cross-border payments, making them faster, more efficient, and cost-effective. This development marks a significant stride towards strengthening economic ties and fostering financial inclusivity across the ASEAN region and India.
The RBI expressed optimism that the Nexus platform could expand to include additional countries in the future, further bolstering its impact on international retail payments.

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