The Reserve Bank of India (RBI) is enhancing its cross-border payments platform to enable instant settlements by partnering with nations in Asia and the Middle East, including the UAE. Current agreements with Sri Lanka, Bhutan, and Nepal already support streamlined transactions. RBI is exploring central bank digital currencies (CBDCs) for settlement, with plans to expand beyond its bank-to-bank pilot launched in 2022. India’s digital rupee has gained 5 million pilot users, while offline solutions are being tested to boost adoption in rural areas. Critics warn of privacy risks in CBDC implementation.
