- Developing Systems for Cross-Border Payments
- Unified Lending Interface (ULI)
- Central Bank Digital Currency (CBDC) and Future Prospects
Reserve Bank of India Governor Shaktikanta Das has proposed creating a plug-and-play system for cross-border payments to enhance interoperability between countries.
Developing Systems for Cross-Border Payments
The Reserve Bank of India (RBI) has proposed the creation of a plug-and-play system for cross-border payments aiming to boost interoperability between countries. Governor Shaktikanta Das discussed the potential of new technologies like fast payment systems and central bank digital currencies (CBDCs) to make cross-border transactions more efficient. He also noted that countries might prefer to design their systems based on domestic needs, which could hinder global harmonization. To address this issue, the RBI suggested developing a plug-and-play system that would allow countries to replicate cross-border payment solutions while maintaining sovereignty.
Unified Lending Interface (ULI)
Das also introduced the Unified Lending Interface (ULI), a new platform aimed at simplifying credit access. This system integrates various data sources, including land records, to streamline credit appraisals, particularly for smaller and rural borrowers. The ULI is expected to revolutionize lending in India, similar to the way Unified Payments Interface (UPI) transformed payments.
Central Bank Digital Currency (CBDC) and Future Prospects
CBDC is another focal point of the RBI’s digital strategy. India has been testing CBDC pilots for both retail and wholesale segments since late 2022. These pilots have already seen substantial user engagement and are exploring features like offline capabilities and programmability. CBDCs could play a crucial role in financial inclusion by ensuring targeted fund delivery and addressing challenges like access to agricultural credit.
The Reserve Bank of India continues to work on creating robust, customer-centric financial systems, leveraging digital technologies to build an inclusive and innovative financial ecosystem.
Comments