RBI governor highlights need for improved cross-border payment services

  • Investing.com
RBI governor highlights need for improved cross-border payment services
Credit: © Reuters.

Reserve Bank Governor Shaktikanta Das, on Monday, emphasized the necessity for faster, more transparent, and inclusive payment services. He stated that such improvements would yield widespread benefits, addressing his concerns over the high cost and slow pace of cross-border payments.

Despite some progress, Das pointed out that the existing cross-border payment systems continue to struggle with high costs, low speed, limited access, and insufficient transparency. He stressed that enhancements to these systems could have far-reaching benefits for individuals and economies globally.

"It would also support economic growth, international trade, and financial inclusion," Das said during the concluding session of the G-20 TechSprint on Monday evening. This event was co-hosted by the Reserve Bank and the Bank for International Settlements.

The G-20 TechSprint, a global long-form hackathon series co-hosted annually by the BIS Innovation Hub and the G-20 presidency, was launched in May 2023 under India's presidency. The series aims to identify new technologies that can address central banks' challenges and priorities. The theme for this year's event was 'technology solutions for cross-border payments'.

Das also noted that several central banks worldwide are considering the introduction of Central Bank Digital Currencies (CBDCs) and are taking steps towards this direction. India is among the few countries that have launched CBDC pilots in both wholesale and retail segments.

"Slowly and steadily, we are expanding the pilot to more banks, more cities, more people, and more use cases. The empirical data that we are generating would go a long way in shaping the policies and future course of action," said Das. He further highlighted that CBDCs' instant settlement feature can play a crucial role in making cross-border payments cheaper, faster, and more secure.

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