'It is necessary to reduce the time and cost of sending money from abroad', RBI Governor told the reason

On Monday, Reserve Bank of India Governor Shaktikanta Das spoke about reducing the time and cost of transferring money from abroad. He believes that this is essential to developing economies.

According to the RBI Governor, new technologies and payment systems can help to accelerate and grow cross-border payments.

"Remittance is the first step to explore the possibilities of cross-border peer-to-peer (P2P) payments for many emerging and developing economies, including India," Das stated at a 'Central Banking at Crossroads' conference. We feel that there is enormous opportunity to drastically cut the cost and time of such remittances.

He further said that the feasibility of extending RTGS for settling transactions in major trading currencies like Dollar, Euro, and Pound could be explored through bilateral or multilateral arrangements.

He said India and a few other economies have already started taking the lead in expanding cross-border fast payment system connectivity both bilaterally and multilaterally.

On e-Rupi, which was launched by the RBI, he said, "Another area which holds potential for efficient cross-border payments is Central Bank Digital Currency or CBDC.

He added that in the future, harmonization of standards and interoperability will enable CBDCs to address serious financial stability concerns linked to cross-border payments and cryptocurrencies.

The Governor of the RBI also expressed concern over artificial intelligence misuse in the banking sector; this could increase the danger of cyber attack and data leak. "Banks and other financial institutions should take adequate risk measures against all these risks. Banks should take advantage of the advantages of AI and BigTech," he said.