India is advancing efforts to establish cross-border payment linkages with multiple countries, as reported by Bloomberg, citing an official from the Reserve Bank of India (RBI).
Deputy Governor T. Rabi Sankar, speaking at a conference in the Philippines, highlighted ongoing discussions with nations like the UAE and other regional neighbors to broaden this network.
These developments build on existing arrangements with Sri Lanka, Bhutan, and Nepal.
Additionally, the RBI is collaborating with central banks across Southeast Asia to create a platform enabling instant cross-border transactions, aligning with the region’s push for financial integration.
India’s initiatives are also closely tied to its exploration of central bank digital currencies (CBDCs).
While the country has launched a pilot CBDC program, Sankar emphasized that a full-scale public rollout remains under consideration, requiring further evaluation of security aspects and potential impacts on banking systems and monetary policy.
RBI Governor Shaktikanta Das has expressed India’s readiness to assist other nations in developing standards for cross-border payments using CBDCs.
The central bank views digital currencies as a cost-effective tool for trade settlements, remittances, and other financial transactions, though comprehensive testing is necessary before widespread implementation.
India’s efforts signal its growing influence in shaping the global financial ecosystem, particularly through innovations in payment infrastructure and digital currency frameworks.
Featured image credit: Edited from Freepik
