Podcast
Questions and Answers
What is the primary objective of Project Nexus?
What is the primary objective of Project Nexus?
- To create a global currency for international transactions.
- To standardize banking regulations across participating countries.
- To develop security protocols for online banking transactions.
- To enhance cross-border payments by interlinking domestic payment systems. (correct)
Which of the following countries is NOT mentioned as a participant in Project Nexus?
Which of the following countries is NOT mentioned as a participant in Project Nexus?
- Malaysia
- Thailand
- Philippines
- Indonesia (correct)
How does Project Nexus aim to improve the efficiency of cross-border payments?
How does Project Nexus aim to improve the efficiency of cross-border payments?
- By creating additional regulatory hurdles for payment systems.
- By reducing the number of transactions between countries.
- By increasing the transaction fees for sending money internationally.
- By allowing one connection to the Nexus platform to reach all countries. (correct)
What was the role of the Bank for International Settlements (BIS) in Project Nexus?
What was the role of the Bank for International Settlements (BIS) in Project Nexus?
What benefit does Project Nexus provide to payment system operators?
What benefit does Project Nexus provide to payment system operators?
Which aspect of cross-border payments is Project Nexus NOT focused on improving?
Which aspect of cross-border payments is Project Nexus NOT focused on improving?
In how many countries does domestic payments currently reach the recipient in seconds?
In how many countries does domestic payments currently reach the recipient in seconds?
What is the expected time frame for cross-border payments facilitated by Project Nexus?
What is the expected time frame for cross-border payments facilitated by Project Nexus?
Which of the following payment systems is linked to India's Fast Payments System (FPS)?
Which of the following payment systems is linked to India's Fast Payments System (FPS)?
What challenge does Project Nexus specifically address for payment system operators?
What challenge does Project Nexus specifically address for payment system operators?
Study Notes
Project Nexus Overview
- Project Nexus is an international initiative aimed at enhancing cross-border retail payments through the interlinking of domestic Fast Payments Systems (FPSs).
- The initiative is conceptualized by the Innovation Hub of the Bank for International Settlements (BIS).
- Countries involved include India, Malaysia, Philippines, Singapore, and Thailand.
Need for Project Nexus
- The Reserve Bank of India (RBI) has been linking its Fast Payments System (UPI) bilaterally with various countries for Person to Person (P2P) and Person to Merchant (P2M) payments.
- While bilateral agreements provide benefits, a multilateral approach is expected to enhance the international reach of Indian payment systems.
- Currently, in over 70 countries, domestic payments can be made in seconds at minimal to zero cost.
Benefits of Project Nexus
- Project Nexus aims to standardize connections between instant payment systems, streamlining the process.
- Instead of creating custom connections for each new country, payment system operators can connect to the Nexus platform for broader access.
- This single connection facilitates a wider network, enabling cross-border payments to be completed, often within 60 seconds.
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Description
Explore Project Nexus, an international initiative led by the Reserve Bank of India aimed at enabling instant cross-border retail payments. This multilateral effort connects various domestic Fast Payments Systems globally. Gain insights into how this innovation is set to revolutionize the way we facilitate international transactions.
