New Delhi, Jul 2 (KNN) The Reserve Bank of India (RBI) and central banks of four ASEAN countries have agreed to establish a platform facilitating instant cross-border retail payments. The initiative, known as Project Nexus, is expected to be operational by 2026.

On Sunday, the Bank for International Settlements (BIS) Innovation Hub, along with the central banks of India, Malaysia, the Philippines, Singapore, and Thailand, signed an agreement in Basel, Switzerland, to launch this multilateral international project.

The platform aims to interlink the domestic fast payment systems (FPSs) of the participating nations.

Project Nexus, conceptualised by the BIS Innovation Hub, will initially connect the FPSs of the founding members including India, Malaysia, the Philippines, Singapore, and Thailand.

Indonesia, which has been involved since the project's early stages, continues to participate as a special observer.

In a statement, the RBI noted that the platform could potentially expand to include more countries in the future.

Once operational, Nexus is expected to significantly enhance the efficiency, speed, and cost-effectiveness of retail cross-border payments.

The RBI has previously engaged in bilateral collaborations with various countries to link India's Unified Payments Interface (UPI) with their respective FPSs for cross-border Person to Person (P2P) and Person to Merchant (P2M) transactions.

While these bilateral connections will continue to benefit India and its partner countries, the multilateral approach of Project Nexus is anticipated to further boost efforts in expanding the international reach of Indian payment systems.

This initiative represents a significant step towards streamlining international financial transactions and fostering greater economic integration among the participating nations.

(KNN Bureau)