Project Nexus
Project Nexus
Project Nexus is an initiative conceptualized by the Innovation Hub of the Bank for International Settlements (BIS). It aims to create a global network for faster and more affordable cross-border instant payment systems (IPS). It is the first BIS Innovation Hub project in the payments area to move towards live implementation. Nexus will play a key role in making retail cross-border payments efficient, faster and more cost-effective.
BIS and central banks of founding countries- Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Philippines (BSP), Monetary Authority of Singapore (MAS) – and the RBI signed an agreement in Basel Switzerland. The project involves collaboration with various central banks and financial institutions to streamline and standardize the processes involved in cross-border transactions, the aim of connecting fast payment systems (FPS).
Founding member Countries– four ASEAN countries (Malaysia, Philippines, Singapore and Thailand); and India.
Indonesia continues as special observer. Nexus platform expanding to more countries, expected to go live in 2026.
Benefits of the platform-
Project Nexus is designed to standardize the way instant payment systems (IPS) connect to each other. Instead of a payment system operator creating a custom connection for each new country it connects to, the operator can create a single connection to the Nexus platform. This single connection allows a fast payment system to reach all other countries on the network. Nexus could significantly accelerate the development of instant cross-border payments.
According to BIS, connecting IPS can enable cross-border payments from sender to recipient within 60 seconds (in most cases).
Presently The Reserve Bank of India has been collaborating bilaterally with its various partner countries to link India’s FPS – Unified Payments Interface (UPI) with their respective FPSs for cross-border person-to-person (P2P) and person-to-merchant (P2M) payments. For example, Bhutan , UAE, France, Sri Lanka, Mauritius. A multilateral approach will provide further impetus to the RBI’s efforts in expanding the international reach of Indian payment systems.
Bank for International Settlements (BIS)
Established in 1930, the BIS is owned by 63 central banks, representing countries from around the world that together account for about 95% of world GDP. BIS is to support central banks’ pursuit of monetary and financial stability through international[RV1] cooperation, and to act as a bank for central banks.
Its head office is in Basel, Switzerland and it has two representative offices (Hong Kong SAR and Mexico City), as well as Innovation Hub Centres around the world.
Innovation BIS 2025, is its medium-term strategy that leverages technology and new collaboration channels to serve the central banking community in the fast-changing world.
The Basel Banking Accords are global rules set by the Basel Committee on Banking Supervision (BCBS), operating under the Bank for International Settlements (BIS) in Basel, Switzerland, providing guidelines for best practices in banking.
It facilitates central banks with:
A forum for dialogue and broad international cooperation
A platform for responsible innovation and knowledge-sharing
In-depth analysis and insights on core policy issues
Sound and competitive financial services
