RBI Unveils Bold Plan to Transform India's Digital Payments by 2028
The Reserve Bank of India (RBI) has announced a series of measures to strengthen and expand the country's digital payments ecosystem over the next three years. These changes aim to improve security, streamline cross-border transactions, and promote financial inclusivity.
Key initiatives include new cybersecurity frameworks, a shared fraud liability model, and India's recent entry into a major international payments project.
The RBI will introduce a cyber key risk indicators (KRI) framework for non-bank payment system operators (PSOs). This move seeks to bolster security across digital transactions. Additionally, a shared responsibility model for fraud liability will be developed, ensuring both the customer's bank and the recipient's bank take accountability.
A focus on cross-border payments will see the RBI simplify authorisation processes by 2028. Regular reports on transaction volumes, costs, and speed will also be published to increase transparency. The central bank has further proposed interoperability within the Trade Receivables Discounting System (TReDS) and plans to explore electronic cheques in India. On the global stage, India officially joined **Project Nexus**—a cross-border payments initiative—on 30 June 2024 in Basel, Switzerland. Originally involving five countries (Malaysia, the Philippines, Singapore, Thailand, and Indonesia), India became the sixth participant. The project has now entered its implementation phase, with **Nexus Global Payments** established. The Philippines has already begun hiring executives and setting up a Singapore-based company, targeting mid-2027 for onboarding. Live operations are expected to begin in 2026. The RBI will also adopt a flexible regulatory approach for smaller payment providers. This aims to encourage innovation while maintaining oversight. Over the next three years, efforts will focus on building trust, resilience, and inclusivity in India's digital payments landscape.
These measures will reshape India's digital payments infrastructure by enhancing security, efficiency, and global connectivity. The RBI's push for interoperability, fraud prevention, and cross-border solutions reflects a broader strategy to modernise financial transactions.
With Project Nexus advancing and new regulatory frameworks in place, the changes are set to take effect progressively over the next few years.
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