The central bank of India stated that this South Asian country is making mobile payment links with several countries.
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar spoke about the mentioned connections during a conversation with reporters on Wednesday, November 20, at a conference in the Philippines. According to him, the South Asian country has already reached an appropriate arrangement with Sri Lanka. He also stated that India is currently working on the future implementation of similar fintech projects with several neighboring countries, and with the United Arab Emirates.
T Rabi Sankar separately noted some arrangements with Nepal and Bhutan. It is worth noting that in this case there are no details about the cooperation process.
According to media reports, RBI is currently interacting with other central banks in its region as part of efforts aimed at building a cross-border platform for instant payment transactions.
It is also worth noting separately that India has already tested the central bank digital currency (CBDC). At the same time, T Rabi Sankar said that the financial regulator of the South Asian country is not in a hurry yet with a wider rollout of the mentioned currency. According to him, this may happen after the RBI has some visibility regarding the outcome or impact. Separately, he noted that there is no specific timeline in this case.
RBI has also joined the financial regulators of Malaysia, the Philippines, Singapore, and Thailand as part of Project Nexus. The initiator of the mentioned project is the Bank for International Settlements. In this case, the goal is to connect the instant payment systems of several central banks.
As part of Project Nexus, the user base of the Indian Unified Payments Interface (UPI) is expected to be expanded. This platform is the largest instant payment system in the world.
Project Nexus is focused on standardizing the way the mentioned systems of different countries connect with each other. In this case, countries need to make one connection instead of performing similar actions as part of the formation of interaction with each new partner in the payment space.
Project Nexus has the potential to connect a market of 1.7 billion people globally.
As we have reported earlier, GenWise Teams Up With Axis Bank to Bring UPI Payments to Senior Citizens in India.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
