As part of its G20 presidency, India is working to expand the narrative beyond financial stability and financial integrity concerns to capture cross-sector and macro-financial implications and risks, RBI Deputy Governor Michael said. Patra.
“We are working to strengthen the capacity of financial institutions to manage third-party and outsourcing risks, among others, that arise from BigTech and fintech, and also enhance global cooperation to strengthen the cyber resilience of the financial sector,” Patra said as part of his speech. at the Indira Gandhi Institute for Development Research (IGIDR) alumni lecture, held on Wednesday.
India has prioritized increasing interoperability between national payment modes as it prepares for the launch of the digital rupee. It has also increased the internationalization of local payment modes through partnerships with payment service providers, such as those with Bhutan and Singapore for QR code-based business payments, and the extension of the UPI payment facility to inbound travelers. from G20 countries for local business transactions. .
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These initiatives are also expected to make cross-border peer-to-peer (P2P) transfers more cost-effective and deepen trade, travel and remittance flows between the two nations, Patra said, adding that other such connections are on the anvil. .
India has become the biggest player in real-time payment transactions globally, with a share close to 50 per cent, with UPI processing around 900 crore of transactions in April. Total digital payments are poised to triple to $10 trillion by 2026, with two out of three transactions going through non-cash modes, he said.
India also currently receives the highest remittance flow in the world at $108 billion as of 2022, up 24.6 percent from a year ago, and accounts for 3 percent of India’s GDP.
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“The future of cross-border payments will be characterized by the creation of dedicated payment rails for instant transfers, while ensuring digital and financial inclusion and further harmonization of cross-border payment regulations,” Patra said. .
Other G20 priorities for India include addressing the macroeconomic implications of food and energy insecurity; climate change; strengthen multilateral development banks (MBDs); debt sustainability; strengthen financial resilience through sustainable capital flows; finance inclusive, equitable and sustainable growth; take advantage of digital public infrastructure; climate finance; and opportunities and risks of technological change.