India Joins Project Nexus with ASEAN Countries for Faster Cross-Border Payments

India has joined Project Nexus, a global initiative aimed at enabling instant cross-border retail payments by linking the payment systems of various countries. This project was conceptualized by the Innovation Hub of the Bank for International Settlements (BIS).

Founding Members

The founding members of Project Nexus include four ASEAN countries—Malaysia, Philippines, Singapore, and Thailand—along with India. An agreement was signed by the central banks of these countries, including the Reserve Bank of India (RBI), Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), and the Monetary Authority of Singapore (MAS) on June 30, 2024, in Basel, Switzerland. Indonesia is involved as a special observer.

Future Expansion

The platform is expected to go live by 2026 and may be extended to more countries in the future. Once operational, Nexus will make retail cross-border payments more efficient, faster, and cost-effective.

India’s Role

India has been working bilaterally with various countries to link its digital public infrastructure, Unified Payments Interface (UPI), with their payment systems for cross-border payments. UPI is a mobile-based fast payment system in India that allows customers to make instant payments using a Virtual Payment Address (VPA). The Indian government aims to extend the benefits of UPI to other countries as well.

Global Impact

Digital payments in India are reaching new heights, with UPI accounting for nearly 80% of digital payments in 2023. India also accounts for nearly 46% of the world’s digital transactions as of 2022.