India is making significant progress in establishing mobile payment linkages with several countries, said T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI). This effort reinforces India’s role as a pioneer in digital financial solutions, focusing on cross-border payments, trade settlements and international remittances.
Expanding cross-border mobile payments
India has already implemented a mobile payments system with Sri Lanka and is in talks with countries like the UAE, Bhutan, Nepal and other neighbours in the region. In addition, the RBI is collaborating with central banks in Southeast Asia (ASEAN) to develop a cross-border instant payments platform.
Central Bank Digital Currency (CBDC)
India is one of the few countries in the world that has launched a central bank digital currency (CBDC) , albeit at the pilot stage. This project aims to:
Optimizing cross-border payments : CBDCs are seen as the most cost-effective solution for remittances, trade settlements, and international payments.
Studying economic impacts : The RBI is assessing how these digital currencies affect bank deposits and monetary policy transmission.
RBI Governor Shaktikanta Das has offered technical support to any country interested in establishing common international standards for cross-border payments based on digital currencies.
Controlled deployment of CBDC
While the potential for CBDCs is huge, Sankar clarified that India is in no hurry to implement them on a large scale. “We are not keeping a specific timeline,” Sankar said, emphasizing that the rollout will depend on the visibility of the results and impact of the current trials.
Conclusion
India’s leadership in integrating mobile payments and developing a digital currency demonstrates its commitment to global financial modernization. With strategic initiatives and international collaborations, India is positioning itself as a benchmark in digital payment solutions, driving global trade and financial efficiency.