New Delhi: Reserve Bank of India Governor Shaktikanta Das advocated reducing the time and cost of remittances, which is important for various developing economies, including India. According to the World Migration Report 2024 released by the International Organization for Migration, India’s remittances surpassed all other countries with $111 billion last year.
According to Bank of England estimates, the value of global cross-border payments is expected to exceed $250 trillion by 2027. He said the significant volume of remittances by cross-border workers, the increasing size of total capital flows and the increasing importance of cross-border e-commerce are the catalysts for this growth.
For many emerging and developing economies, including India, remittances are the starting point for exploring cross-border peer-to-peer payment possibilities. There is immense potential to significantly reduce the cost and time of such remittances.
Additionally, the possibility of expanding real-time gross settlement to settle transactions in major trading currencies such as the dollar, euro and pound through bilateral or multilateral arrangements can be explored.
Das said India and some other economies have begun efforts to expand connectivity with cross-border faster payment systems, both bilaterally and multilaterally.
It also includes ‘Project Nexus’, a multilateral initiative to enable instant cross-border retail payments by interconnecting the local instant payment systems of four ASEAN countries (Malaysia, Philippines, Singapore and Thailand) and India.
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