• UGI USER
  • Jul 30, 2024
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RBI REPORT ON DIGITALISATION AND FINANCE

Why in the news?

RBI report highlights digitalisation’s benefits and risks, including impulsive spending, data breaches, and cross-border payment system integration.

source:hindustanbussinessline

Cross-Border Payment Systems

  • RBI’s UPI integrated with Singapore’s PayNow for faster remittances.
  • RBI and Central Bank of UAE signed MoU for interlinking UPI with UAE’s Instant Payment Platform.
  • Project Nexus: Multilateral initiative linking UPI with Malaysia, Philippines, Singapore, and Thailand’s FPS.
About Project Nexus:

  • About: Multilateral initiative for instant cross-border retail payments by linking domestic FPSs.
  • Initiated by: BIS Innovation Hub.
  • Goal: Enable global instant cross-border retail payments.
  • Objective: Standardise IPS connections, simplifying international payments.
  • Founding Members: Malaysia, Philippines, Singapore, Thailand, India; Indonesia joining.

Key Features and Benefits

  • Instant Payments: Completes cross-border payments within 60 seconds.
  • Single Connection: One connection to Nexus provides access to all network countries.

Recent RBI Developments

  • UPI Cash Deposit Facility: Use UPI app at CDMs for cash deposits.
  • Third-Party App for PPIs: Allow UPI payments via third-party apps.
  • FPIs in Sovereign Green Bonds: Authorise foreign investors for Sovereign Green Bonds.
  • Retail Direct Scheme Mobile App: Mobile app for investing in government securities.
  • Review of LCR Framework: Enhance liquidity risk management for banks.