RTGS transactions in dollar, pound and euros soon? Here’s what RBI is planning

| TOI Business Desk | TIMESOFINDIA.COM | Oct 15, 2024, 12:21 IST

The Reserve Bank of India may expand the RTGS to include major cu... Read More

RTGS in dollars soon? Real Time Gross Settlement System or RTGS could possibly be expanded to include the settlement of transactions in major trade currencies such as the US dollar, euro, and pound sterling. The RTGS, which is used for real-time fund transfers between banks, is operated by the RBI.

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RBI governor Shaktikanta Das has said that the central bank is considering widening the scope of RTGS. This expansion would be achieved through bilateral or multilateral arrangements. Expanding RTGS to include major trade currencies would speed up access to more affordable cross-border payments and remittances.

The RBI has consistently advocated for more affordable cross-border payment systems. In September 2023, deputy governor T Rabi Sankar described the current high costs associated with cross-border remittances as "simply unconscionable." An expanded RTGS using major trade currencies would facilitate faster access to less expensive cross-border payments and remittances.

According to an ET report, Das, speaking at the RBI@90 conference in New Delhi, mentioned that "India and a few other economies have already commenced efforts to expand linkage of cross-border fast payment systems both in the bilateral and multilateral modes."

In addition to the potential expansion of RTGS, Das emphasized the role of central bank digital currencies (CBDCs) in enabling efficient cross-border payments.

However, he noted that harmonization of standards and interoperability would be necessary to facilitate this process. While countries may prefer to design their own systems based on domestic considerations, Das suggested that this challenge could be overcome by developing a plug-and-play system that allows replicability of India's experience while maintaining the sovereignty of respective countries.

Top 10 Largest Economies In The World 2025: India To Become 4th Largest Economy Soon!

Top 10 Largest Economies In The World 2025 By GDP: India is the fastest growing major economy in the world, but did you know that the Indian economy is set to achieve another big feat in 2025? According to the IMF's World Economic Outlook, India is set to overtake Japan to become the world’s fourth largest economy in 2025! Which will be the world’s top 10 largest economies in the world in 2025? What will be the nominal GDP of the United States, China, Germany and other major economies. When will India become the world’s 3rd largest economy? We take a look at the world’s top 10 largest economies 2025 list: (AI image)

Top 10 Largest Economies In the World 2025: United States of America will continue to be the world’s largest economy in nominal GDP terms in 2025, according to IMF projections. The US GDP is expected to be $29,840 billion in 2025, as per the IMF. (AI image)

China will continue to rank second on the list of the top 10 largest economies in the world in 2025. According to IMF projections, China’s nominal GDP for 2025 will be $19,790 billion. For 2024, the GDP is seen at $18,533 billion. (AI image)

Germany will be the world’s third largest economy in the world GDP rankings for 2025. IMF data projects that Germany’s GDP for 2025 will be $4,772 billion, up from $4,591 billion in 2024. (AI image)

Top 10 Largest Economies In The World 2025: India will achieve the major feat of becoming the world’s 4th largest economy by nominal GDP size in 2025, as per IMF’s projections. India is currently the world’s 5th largest economy as per 2024 rankings, but is expected to overtake Japan to move up to the 4th spot in the top 10 largest economies the world list with a nominal GDP of $4,340 billion. In fact, IMF has predicted that by 2027, India will become the world’s 3rd largest economy, surpassing the GDP of Germany! (AI image)

Japan is at present the world’s 4th largest economy as per 2024 IMF data. However, moving into 2025, Japan’s economy is expected to slip to the 5th spot in the top 10 largest economies in the world rankings. Japan’s GDP for 2025 is projected at $4,310 billion by the IMF. (AI image)

The United Kingdom will retain its spot as the world’s 6th largest economy in the world by GDP size in 2025 as well. UK’s nominal GDP for 2025 is projected to be around $3,685 billion, as per the IMF. (AI image)

France, which is currently the world’s 7th largest economy by nominal GDP size, will still hold the seventh spot in 2025, as per IMF projections. The nominal GDP of France is expected to be $3,223 billion in 2025, the IMF has predicted. (AI image)

Top 10 Largest Economies 2025: Brazil, which at present ranks 9th on the top 10 largest economies 2024 list, will move up a spot to take the 8th rank in 2025, the IMF has predicted. As per IMF’s projections, Brazil’s nominal GDP will be $2,438 billion in 2025. (AI image)

As per 2024 world’s largest economies ranking, Italy is the 8th largest by GDP size. However, in 2025, it will slip a spot and become the world’s 9th largest economy. The IMF has predicted that Italy’s nominal GDP will be $2,390 billion in 2025. (AI image)

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RTGS transactions in dollar, pound and euros soon? Here’s what RBI is planning

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