India to Develop Cross-Border Retail Payment Platform with Four ASEAN Nations
The Reserve Bank of India (RBI) announced its participation in Project Nexus, a pioneering initiative aimed at creating a cross-border retail payment platform in collaboration with four ASEAN countries. Conceptualized by the Innovation Hub of the Bank for International Settlements (BIS), Nexus will connect India’s Unified Payments Interface (UPI) with the fast payment systems of Malaysia, the Philippines, Singapore, and Thailand.
The Reserve Bank of India (RBI) announced its participation in Project Nexus, a pioneering initiative aimed at creating a cross-border retail payment platform in collaboration with four ASEAN countries. Conceptualized by the Innovation Hub of the Bank for International Settlements (BIS), Nexus will connect India’s Unified Payments Interface (UPI) with the fast payment systems of Malaysia, the Philippines, Singapore, and Thailand.
The official agreement was signed by the BIS and the central banks of the founding members—Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and the Reserve Bank of India—on June 30, 2024, in Basel, Switzerland. Indonesia, an early-stage participant, continues to be involved as a special observer.
The RBI has been proactively collaborating bilaterally with various countries to integrate India’s UPI with their respective fast payment systems for seamless cross-border Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. However, Project Nexus represents a significant leap towards a multilateral approach, providing a robust platform for expanding the international reach of Indian payment systems.
“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 our efforts in expanding the international reach of Indian payment systems,” the RBI stated.
Project Nexus is expected to go live by 2026. Once operational, the platform will enhance the efficiency, speed, and cost-effectiveness of retail cross-border payments. The RBI highlighted that this initiative could be extended to include more countries in the future, fostering greater global financial integration.
Nexus aims to revolutionize the landscape of cross-border payments, addressing long-standing challenges associated with international transactions. By leveraging the advanced capabilities of UPI and the fast payment systems of ASEAN countries, Nexus will facilitate instantaneous payments, reducing the complexities and costs traditionally associated with cross-border financial exchanges.
This initiative underscores India’s commitment to strengthening economic ties with ASEAN nations and enhancing the global financial ecosystem. The successful implementation of Project Nexus could serve as a model for other regions, demonstrating the potential of collaborative innovation in transforming international payment systems.
As Project Nexus moves towards its expected launch in 2026, stakeholders from the participating countries are optimistic about the platform’s potential to redefine cross-border retail payments. The collaborative efforts of the BIS, RBI, and central banks of the founding ASEAN countries signal a new era of financial connectivity, promising significant benefits for businesses and consumers alike.
With India at the forefront of this groundbreaking initiative, the Nexus platform represents a bold step towards a more interconnected and efficient global payment system. The world will be watching closely as this ambitious project unfolds, setting new benchmarks for international financial collaboration.
Sources By Agencies
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