Shaktikanta Das Advocates for Cost-Effective Overseas Remittances

Reserve Bank Governor Shaktikanta Das emphasized the need to reduce time and cost of international remittances to support developing economies like India. India's remittances hit USD 111 billion last year. A multilateral approach and innovation such as Central Bank Digital Currency (CBDC) is encouraged for efficient cross-border payments.

Reserve Bank Governor Shaktikanta Das highlighted the importance of reducing both time and cost associated with international remittances, particularly for emerging economies including India. His remarks come in light of India's remittance inflow reaching USD 111 billion last year, as reported by the World Migration Report 2024.

Das emphasized exploring cross-border peer-to-peer (P2P) payment solutions to further this trend. Current initiatives, such as Project Nexus, aim to integrate domestic instant payment systems across ASEAN countries and India, facilitating seamless cross-border retail payments. Additionally, examining the feasibility of real-time gross settlement in major trade currencies could advance these efforts.

Highlighting risks in the financial domain, Das cautioned against the misuse of Artificial Intelligence in banking, which could lead to heightened cyber threats. He stressed the need for banks to strengthen liquidity buffers and implement risk mitigation strategies, while navigating the complexities of global monetary policy divergences and financial stability challenges.

(With inputs from agencies.)