• UGI USER
  • Jul 02, 2024
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“RBI JOINS PROJECT NEXUS FOR INSTANT CROSS-BORDER RETAIL PAYMENTS”

Why in the news?

  • The Reserve Bank of India joined Project Nexus to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems.
  • The initiative aims to connect the FPSs of India, Malaysia, the Philippines, Singapore, and Thailand, enhancing cross-border payments.p
source:scribd

About Project Nexus:

  • Purpose: Nexus connects multiple national payment systems into a cross-border network for international payments in seconds.
  • Current State: Over 60 countries have instant domestic payment systems with near-zero cost.
  • Improvement Potential: Linking domestic instant payment systems (IPSs) can enhance cross-border payments.
  • Proof of Concept: Demonstrated the technical feasibility and potential benefits of multilaterally connecting IPSs for individuals and businesses globally.
About Reserve Bank of India (RBI):

  • Central Bank: India’s central bank and regulatory body
  • Establishment: Founded in 1934 under the Reserve Bank of India Act
  • Origins: Based on recommendations of the 1926 Royal Commission on Indian Currency and Finance (Hilton Young Commission).
  • Fully owned by the Ministry of Finance, Government of India, since nationalisation (1949).

Role:

  • Monetary Authority:Formulates, implements, and monitors monetary policy.
  • Regulator and Supervisor of the Financial System:Prescribes parameters for banking operations.
  • Manager of Foreign Exchange:Manages Foreign Exchange Management Act, 1999.