RBI, Asean Partner To Facilitate Cross-Border Retail Payment

The Reserve Bank of India has collaborated with various countries to link India’s fast payments system—the Unified Payments Interface—with their respective FPSs, for faster cross-border person-to-person and person-to-merchant payments.

A multilateral approach will help in expanding the international reach of Indian payment systems, according to a statement by the central bank.

The RBI has also joined the Nexus Project—a multilateral international initiative—to allow fast cross-border retail payments by interlinking domestic FPSs. It was ideated by the Innovation Hub of the Bank for International Settlements. Nexus aims to connect the FPSs of the four Association of Southeast Asian Nations, who would be the founding members and the first to use this platform, it said.

An agreement for the same was signed by BIS and the founding countries on June 30. Indonesia, which has been involved from the early stages, will continue to be involved as a special observer.

The platform is expected to be functional by 2026. Nexus will play an important role in making retail cross-border payments efficient, faster, and more cost-effective.