Project Nexus Signed by RBI

The RBI has joined Project Nexus, a multilateral international initiative aimed at enabling instant cross-border retail payments through the interlinking of domestic Fast Payments Systems (FPSs).

About Project Nexus

• Conceptualized by the Innovation Hub of the Bank for International Settlements (BIS).
• Aims to enhance cross-border payments by connecting multiple domestic Instant Payment Systems (IPS) globally.
• Marks the first BIS Innovation Hub project in the payments sector to move towards live implementation.
• Will interlink India’s Unified Payments Interface (UPI) with the Fast Payments Systems (FPS) of Malaysia, Philippines, Singapore, and Thailand.

RBI’s Role and Collaboration

• Historically, the RBI has engaged in bilateral collaborations to link India’s FPS, specifically UPI, with other countries’ FPSs for cross-border Person to Person (P2P) and Person to Merchant (P2M) payments.
• While bilateral connectivity efforts will continue, the multilateral approach through Project Nexus aims to further expand the international reach of Indian payment systems.
• India serves as the founding member and initiator of this platform, alongside central banks from:
  1. Bank Negara Malaysia (BNM)
  2. Bank of Thailand (BOT)
  3. Bangko Sentral ng Pilipinas (BSP)
  4. Monetary Authority of Singapore (MAS)
• Indonesia is set to join the platform in the future.

Benefits of Project Nexus

• Standardizes the connectivity of IPS worldwide.
• Enables a single connection to the Nexus platform for payment system operators, facilitating rapid access to all other countries on the network.
• Expected to significantly expedite the growth of instant cross-border payments, streamlining international retail transactions.