The Reserve Bank of India (RBI) has joined Project Nexus, an initiative designed to enable instant cross-border retail payments by linking domestic Fast Payment Systems (FPS).
Initial Linkages
Nexus will initially interlink India’s Unified Payments Interface (UPI) with the Fast Payment Systems (FPS) of Malaysia, the Philippines, Singapore, and Thailand by next year. Indonesia is set to join the platform in the future.
Benefits of Project Nexus
According to RBI Governor Shaktikanta Das, the greatest advantage of Project Nexus will be to make cross-border payments much faster and less costly. This project is seen as a precursor to greater international cooperation among countries to enable faster cross-border remittances at a lower cost.
Multilateral Cooperation
Project Nexus is a collaborative effort involving the Bank for International Settlements Innovation Hub (BISIH) and aims to enhance payment efficiency and speed through multilateral cooperation. The initiative will benefit both person-to-person and person-to-merchant transactions.
Future Prospects
Governor Shaktikanta Das emphasized the advantages of Project Nexus, which aims to link UPI with the FPS of countries such as Malaysia, the Philippines, Singapore, and Thailand, with Indonesia joining later. This initiative seeks to improve cross-border payment efficiency and promote international cooperation for faster and more cost-effective remittances.
Incident Report
There was a cross-border firing incident in the Poonch district along the Line of Control (LoC) with no reported casualties. The incident occurred at an Indian post in the Krishna Ghati sector and led to an army response.
Military Response
In response to the incident, army troops conducted searches to prevent terrorist infiltration. Vigilance has been heightened following the incident, which took place late on Friday night.
Multiple Choice Questions (MCQs):
- What is the primary aim of Project Nexus?
- A) To increase tourism between countries
- B) To enable instant cross-border retail payments
- C) To reduce tariffs on goods
- D) To enhance military cooperation
- Which countries will initially have their Fast Payment Systems (FPS) linked with India’s UPI through Project Nexus?
- A) Malaysia, the Philippines, Singapore, and Thailand
- B) Malaysia, Indonesia, Singapore, and Thailand
- C) Malaysia, the Philippines, Singapore, and Vietnam
- D) Malaysia, Indonesia, Singapore, and Vietnam
- Who emphasized the advantages of Project Nexus during the signing of the agreement?
- A) Prime Minister of India
- B) Finance Minister of India
- C) Governor of RBI, Shaktikanta Das
- D) CEO of BISIH
- What does Project Nexus aim to improve?
- A) Cross-border payment efficiency
- B) International travel policies
- C) Global trade regulations
- D) Environmental standards
- What was the location of the cross-border firing incident reported in the document?
- A) Ladakh sector
- B) Krishna Ghati sector
- C) Siachen sector
- D) Arunachal Pradesh sector