Explained --What Is Project Nexus? RBI's Pact To Link UPI With 4 ASEAN Countries

Reserve Bank of India (RBI) has joined Project Nexus with four ASEAN countries of Malaysia, Philippines, Singapore, and Thailand to establish a platform that will enable instantaneous cross-border retail payments.

The central banks of the founding countries - Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and Reserve Bank of India - have signed asn agreement to this effect with the Bank for International Settlements (BIS).  

To connect the Unified Payments Interface (UPI), India's Fast Payments System (FPS), with the FPSs of other nations for cross-border Person to Person (P2P) and Person to Merchant (P2M) payments, the RBI has been working bilaterally with these nations.

Developed by the Innovation Hub of the BIS Nexus will work towards connecting India’s UPI (Unified Payments Interface) with the quick payment systems of ASEAN members -- Malaysia, Philippines, Singapore, and Thailand. India and these four countries would be the first movers and founding members of this platform, the RBI said. In the future, the platform can be expanded to new nations. 

By 2026, the platform should be operational. According to the RBI statement, once it is operational, Nexus will be crucial in improving the effectiveness, speed, and cost-effectiveness of retail cross-border payments.

India and its partner countries will continue to benefit through the bilateral connectivity of Fast Payment Systems. This multilateral approach will also provide impetus to expanding the international reach of Indian payment systems.