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.
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