Project Nexus:
RBI recently joined Project Nexus, an initiative to enable instant cross-border retail payments by linking domestic Fast Payment Systems.
- Project Nexus is a multilateral international initiative to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems (FPSs).
- Rather than requiring FPS operators to establish multiple custom connections for each country, Nexus provides a standardized, single-connection solution that enables seamless transactions across borders.
- With Nexus, an FPS operator can connect to a single network, enabling instant access to other countries within the network.
- It was conceptualized by the Innovation Hub of the Bank for International Settlements (BIS).
- It aims to connect the FPSs of four ASEAN countries (Malaysia, Philippines, Singapore, and Thailand); and India, who would be the founding members and first mover countries of this platform.
- The platform, which can be extended to more countries, is expected to go live by 2026.
- When a new country joins Nexus, existing members are automatically connected to that country and vice versa. This means the network can expand at a near-zero marginal cost for existing members.
- By simplifying and unifying the payment infrastructure, Project Nexus seeks to enhance efficiency, reduce costs and improve the accessibility of international payments.
