What is Project Nexus by RBI?

July 2, 2024

The Reserve Bank of India (RBI) has joined Project Nexus, a worldwide effort to make it easier for people to send money instantly across borders. To do this, Fast Payment Systems (FPSs) in different countries are linked together. In this plan, the Unified Payments Interface (UPI) of India will link to the FPSs of Malaysia, the Philippines, Singapore, and Thailand. This is all part of the project.

About Project Nexus

The Bank for International Settlements (BIS) Innovation Hub started Project Nexus to bring about a new way of doing things in international payments. Nexus’ main goal is to improve international money transfers by combining different local Instant Payment Systems (IPS) in a way that doesn’t cause any problems. With this promise, Project Nexus will be the first live implementation-focused project for the payments industry by the BIS Innovation Hub. The framework of the project supports an open, quick, and safe space for sending money across borders, supporting connectivity for both Person to Person (P2P) and Person to Merchant (P2M) payments.

Advantages of Project Nexus

Project Nexus is unique because it can standardize the connectivity methods for instant payments around the world. In the past, each country’s FPS needed its unique links to each other’s. With Nexus, these systems only need one way to connect to the platform. This makes the process much easier and cuts down on the time and money needed for integration. Some of the biggest benefits are faster purchases (often finished in less than 60 seconds) and lower costs, which lead to more users and happier users.

Membership and Expansion

Founding Members of Project Nexus: At its commencement, Project Nexus will include the Fast Payment Systems (FPSs) of four Association of Southeast Asian Nations (ASEAN)—Malaysia, Philippines, Singapore, and Thailand—alongside India. These nations, recognized as the founding members of the Nexus platform, formalized their participation and mutual commitment at a signing event held in Basel, Switzerland, on June 30, 2024.
Future Expansion Plans: Looking into the future, additional countries like Indonesia have expressed intentions to join the initiative, indicating potential growth and broader interconnectivity within global payment networks.
Economic Impact and Efficiency: The Reserve Bank of India (RBI) and its partners want to strengthen the economy so that digital transactions across borders are not only possible but also as common and quick as those conducted within the country.

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