The newly appointed governor of India’s reserve bank (RBI), Sanjay Malhotraannounced that the central bank will extend the range of United Payments Interface (UPI) Bilaterally by linking UPI with fast payment systems in other countries and facilitating effective cross -border payments.
At the same time, the RBI will investigate connection systems other than UPI to improve cross -border payment efficiency and promote innovation in payment systems through “soft contact rules” within established boundaries.
“In domestic payments, UPI success has driven India to a leadership position with a share of 48.5 percent in global real -time payments in volume, we will strive to make cross -border payments more efficient,” Said Malhotra At the inauguration of digital payment consciousness weeks 2025.
“This assumes that India is the largest recipient of personal transfers globally. According to a World Bank Report, it was estimated that India in 2024 received India, which received transfers totaling $ 130 billion. We must address the challenges with high cost, slow speed and insufficient access and openness in cross -border payments, ”Malhotra emphasized.
The central bank will continue its involvement in a multilateral project called Project Nexus, to enable immediate cross -border retail payments, informed Malhotra. Nexus, conceptualized by the innovation hub of Bank for international settlements (BIS), aims to connect the fast payment systems in four Southeast Asian countries – Malaysia, the Philippines, Singapore and Thailand – and India, which would be the founding members and the first moving countries in this platform.
“Apart from the RBI, the government and other important stakeholders such as banks and payment system operators have also taken a number of initiatives to encourage the adoption of digital payments. While these efforts have produced results, as visible in Enormous growth of digital paymentsThere is still much more to do, ”Malhotra.
Malhotra, who gave up his role as income secretary for the Ministry of Finance, is the 26th governor of the RBI for a three -year period from December 2024. Last month, He decreased India’s benchmark interest rate for the first time in almost five years, with economists who expect further interest rate cuts in April. The central bank expects the country’s growth for the financial year will start on April 1 will affect 6.7%, at a time when USA-KINA trade war are intensifying, tariffs are introduced to trading partners, and the global economy seems to be approaching a critical time Similar to the global financial crisis in 2008.
Digital payment for economic growth
“Payments through digital modes support Economic growth. They also deepen economic inclusion by overcoming obstacles such as high transaction costs and geographical restrictions. In fact, digital payments are not only practical but are also a powerful tool for economic empowerment and growth, ”Malhotra pointed out.
He explained that payments are “life blood for trade”, which enables the flow of goods and services in an economy.
“They connect people, strengthen individuals and companies and drive economic growth. Fast, secure and reliable payments at affordable prices are the bedrock for a lively economy, ”he noted.
“Although much progress has been made in the development, dissemination and adoption of digital payments, there is much space to further deepen and expand digital payments in the country. In January 2025, more than 20 billion payments were made almost 250 trillion rupees in India through digital locations. Digital payments have become the preferred payment method for many of us, ”added Malhotra.
However, surveys show that almost 40% of India’s adult population still does not use digital payments. Malhotra said that one of the main reasons for this is the lack of awareness or knowledge of digital payments.
To help the public understand digital payments observe the RBI digital payment consciousness week (DPAW) every March. As part of this endeavor was launched “Payment Digital” assignment in 2023 to promote digital payments by raising awareness among all citizens and making available infrastructures and solutions for people to make payments digitally.
The fifth DPA observed from March 10-16 with a theme, “India pays digitally”, reflecting the country’s transformative journey towards a digitally authorized Citizenship with everywhere’s proximity and convenience with digital payments.
DPAW is an initiative to highlight the impact and importance of digital payments and to create awareness of the safe use of digital payment products. During the week, the RBI, together with payment system operators, banks and other stakeholders, will conduct nationwide awareness activities, including multimedia campaigns, training programs on the ground and social media.
“The objectives of mission have Payment Digital can only be achieved with active participation of all stakeholders. Geographies and population segments, which lag behind in use and awareness of digital payments must be identified and appropriate measures taken to increase consciousness and improve use, ”” Malhotra pointed out.
The RBI’s regional office also implements awareness programs called Ebaat. RBI has implemented these programs since 2012, and over the past eight years more than 1,800 such programs have been implemented. Malhotra said that in 2025 the content and method of delivery of Ebaat will be reviewed, and a pilot will be implemented with the goal of reaching “a very large number of people in the most effective way.”
Encourage innovation while managing risks
Malhotra said that the RBI will continue to encourage innovation in payments while being aware of risks and taking appropriate measures to mitigate them.
“We will promote innovation to facilitate payment systems that are fast, secure, secure, accessible and resilient. We have adopted a soft touch of the method for regulating the payment ecosystem and Fintech“He said.
Through these regulations, RBI intends to balance these divergent expectations. Malhotra said that RBI’s strategy has been to establish legislative rolls within which all stakeholders are free to operate.
“We will continue to encourage innovation while promoting security and security through soft touch rules,” added Malhotra.
Look: India will be front trunner in digitalisation
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