The Governor of the RBI, Shaktikanta Das, said on Monday that India's Unified Payments Interface, or UPI, can become the plug-and-play model for other countries as also it would reduce the cost of cross-border remittances to a very low level.
At the RBI@90 Global Conference on 'Digital Public Infrastructure and Emerging Technologies', Das spoke of the challenge for harmonization of payment systems globally. In light of that, he said countries may wish to develop their respective systems based on local needs. He further mooted a plug-and-play system which could be easily replicated while respecting national sovereignty.
It said that India has taken initiatives in this direction and is ready to provide the plug-and-play solution for the benefit of the international community. Das said UPI may provide a cheaper and quicker option to citizens for cross-border remittances, especially for small value transactions, which could be implemented in quick time.
Das also pointed out that the diverse landscape of India would mean that any effective solution for India could be adapted to meet country-specific needs in other countries. He invited all the international delegates to actively participate in the deep dive session on UPI scheduled on Day 2 of the conference, sharing insights and experiences that may be enlightening for all.
He also stated the theme of the G20 presidency in 2023 as 'One Earth, One Family, One Future,' which, in fact, depicts India's vision for a united global community with a shared future.
The Governor further spoke about the current initiatives taken in various multilateral groups, including G20 and the Committee on Payments and Market Infrastructures (CPMI), with a view to improving efficiency in cross-border payments. He thus admitted that though the ideal solution would be to connect the old payment systems, from the practical point of view, interoperability may pose some problems and require trade-offs. Technical difficulties could be conquered by the acceptance of international standards. Long-term sustainability will also essentially require the formation of a governance structure.
