India is working on establishing cross-border payments linkages with several countries, Bloomberg reported, citing officials at the Reserve Bank of India (RBI).
Lieutenant Governor T. Ravi Sankar, speaking at a conference in the Philippines, highlighted continued consultations with countries such as the UAE and other neighboring countries to expand this network.
These developments build on existing agreements with Sri Lanka, Bhutan and Nepal.
Additionally, RBI is working with central banks across Southeast Asia to build a platform that enables instant cross-border transactions, in line with the region’s drive for financial integration.
India’s efforts are also closely tied to the exploration of central bank digital currencies (CBDCs).
The country has launched a pilot CBDC program, but a full-scale public rollout is still under consideration, and security aspects and the potential impact on the banking system and monetary policy need to be further assessed, Sankar said. he emphasized.
RBI Governor Shaktikanta Das expressed India’s readiness to assist other countries in developing standards for cross-border payments using CBDC.
Central banks see digital currencies as cost-effective tools for trade payments, remittances and other financial transactions, but comprehensive testing is needed before widespread adoption.
India’s efforts demonstrate its growing influence in shaping the global financial ecosystem, particularly through innovations in payments infrastructure and digital currency frameworks.
Featured image credit: Edited from freepic
