Current Affair 1:

News:

The Reserve Bank of India (RBI) has joined Project Nexus, a multilateral international initiative to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems (FPSs).

Basic introduction out Nexus:

In over 70 countries today domestic payments reach their destination in seconds at near-zero cost to the Sender or Recipient. This is thanks to the growing availability of instant payment systems (IPS).  Connecting these IPS to each other can enable cross-border payments from Sender to Recipient within 60 seconds (in most cases).

What is Project Nexus?

Nexus is designed to standardize the way that IPS connect to each other. Rather than a payment system operator building custom connections for every new country that it connects to, the operator can make one connection to the Nexus platform.

“Nexus is a Bank for International Settlements Innovation Hub (BISIH) project that explores how to build on the success of domestic instant payments to improve the speed, cost, transparency, and accessibility of cross-border payments”.

This ‘interlinking’ of IPS is a priority of the G20 Roadmap for Enhancing Cross-border Payments.

The project set out to:

Which countries have joined the platform?

Project Nexus aims to connect the FPSs of four Association of Southeast Asian Nations (ASEAN) — Malaysia, Philippines, Singapore, and Thailand; and India, who would be the founding members and first mover countries of this platform.

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