The Reserve Bank of India is working on a simpler framework for cross-border payment approvals as part of its Payments Vision 2028 roadmap, according to a report by EY. The central bank wants to reduce compliance hurdles for businesses and improve the efficiency of international transactions.
The report, titled Payments Vision 2028: Preparing to Shape India’s Payment Frontier, says the RBI has identified cross-border payments as a strategic focus area. The goal is to support India’s growing trade ambitions, especially for exporters.
One proposal under consideration is a single-window application process. Businesses would use it to get authorisations required under the Payment and Settlement Systems Act and the Foreign Exchange Management Act. The idea is to streamline regulatory procedures and make cross-border transactions easier.
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EY said the RBI also plans to review the entire cross-border payments ecosystem. The review aims to identify and fix operational and regulatory bottlenecks. The focus is on improving transaction efficiency and reducing friction for micro, small and medium enterprises.
According to the report, the review will specifically target exporters, with particular emphasis on micro, small and medium enterprises (MSMEs). These businesses are often disproportionately affected by the existing compliance costs and processing delays in cross-border payments, and the planned exercise aims to ease those hurdles.
The report noted a shift in the RBI’s payments strategy. Earlier initiatives focused on expanding the international footprint of domestic platforms like UPI and RuPay. The new vision puts more weight on improving the underlying framework that governs cross-border transactions.
This shift reflects a recognition that while outward expansion of Indian payment systems remains valuable, a robust and efficient regulatory infrastructure is equally critical for facilitating trade. The emphasis has moved from promoting specific platforms abroad to overhauling the rules and processes that all cross-border transactions must follow.
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Technology and supervision get more attention
According to EY, the proposed changes are meant to boost transparency, simplify compliance and improve the user experience for businesses engaged in international trade.
The report also highlights the RBI’s growing interest in technology-led supervision. Payments Vision 2028 envisions greater use of artificial intelligence and data analytics for fraud detection, risk monitoring and regulatory oversight. AI-enabled databases and data-driven monitoring tools are expected to help policymaking and strengthen the payments ecosystem’s resilience.
These AI-enabled databases will allow regulators to aggregate and analyse transaction data in real time, helping to detect suspicious patterns and emerging risks more quickly than manual oversight. Data-driven tools are also expected to support evidence-based policymaking by providing insights into payment flows and operational trends.
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Customer protection, fraud management and interoperability across payment systems are also priorities as digital transactions keep growing.
Interoperability between different payment systems is seen as a key enabler for seamless cross-border transactions, where multiple networks and currencies are involved. Strengthening fraud management and customer protection measures will help build trust in the digital payments ecosystem as transaction volumes continue to rise.
EY said the broader objective of Payments Vision 2028 is to strengthen India’s position in the global payments setting. The central bank aims to combine scale with innovation, efficiency and robust regulatory standards. Exactly how quickly these proposals will move from paper to practice remains unclear.