The Reserve Bank of India (RBI) announced its participation in Project Nexus alongside four ASEAN nations to facilitate instant settlement of cross-border retail payments.
Objectives of Project Nexus
Project Nexus, initiated by the Bank for International Settlements (BIS) Innovation Hub, aims to integrate India’s UPI (Unified Payments Interface)
with the faster payment systems of ASEAN countries, including Malaysia, Philippines, Singapore, and Thailand.
Agreement and Future Plans
The agreement, signed in Basel, Switzerland on June 30, 2024, includes participation from BIS and the central banks of the four ASEAN countries—Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP),
and Monetary Authority of Singapore (MAS). Indonesia, involved since the inception, will serve as a Special Observer.
Launch and Impact
RBI mentioned that the platform is expected to go live by 2026 and can potentially expand to include more countries in the future.
Nexus Retail is anticipated to significantly enhance the speed and cost-effectiveness of cross-border payments.
Key Developments and Future Plans
According to RBI, the agreement was formally signed with the central banks of Malaysia, Thailand, Philippines,
and Singapore in Basel, Switzerland, on June 30, 2024.Indonesia, involved since the inception, will serve as a Special Observer in the project.
Implementation and Impact
RBI plans to launch the Nexus platform by 2026, anticipating its expansion to more countries over time.
This initiative is expected to enhance the efficiency and reduce costs of cross-border payments through Nexus Retail.
