Context

• India (RBI) has joined 'Project Nexus', a multilateral international initiative (Agreement) that aims to enable instant cross-border retail payments through interlinking payment systems of various countries.

Key Highlights

• It has been conceptualised by the Innovation Hub of the Bank for International Settlements (BIS)
• Founding members: four ASEAN countries (Malaysia, the Philippines, Singapore, and Thailand) and India
• Special observer: Indonesia
• It will become functional by 2026.

Importance

• It is an initiative to enable instant cross-border retail payments through ‘Fast Payment System’ (FPS).
• It will link India’s UPI to the FPS of other member countries.
• More cost-effective remittances

About the Agreement

• Signed at: Basel, Switzerland
• Between BIS and the central banks of these founding countries - Bank Negara Malaysia, Bank of Thailand, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, and Reserve Bank of India. 

Reserve Bank of India

• Established: April 1, 1935 (under the Reserve Bank of India Act, 1934)
• Core functions: Issue and administer currency, maintain monetary stability and credit system in India
• Current Governor: Shaktikanta Das
• Headquarters: Mumbai

Association of Southeast Asian Nations (ASEAN)

• Established: August 8, 1967, Bangkok
• Member countries (10): Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam
• Headquarter: Jakarta, Indonesia
• ASEAN+3: China, Japan and South Korea

Bank for International Settlements (BIS)

• The world's oldest international financial institution
• Founded: 1930 (Under the 'Hague Agreement', 1930)
• Headquarters: Basel, Switzerland