Reserve Bank Deputy Governor T Rabi Sankar on Tuesday said the current system cannot make cross-border payments cheaper despite the advancement in technology, and policymakers will have to show "willingness" to make it happen.
Regretting that commissions of over 6 per cent are charged in retail cross-border payments, Sankar said the current banking correspondent-based system cannot yield success on this front.
Countries have a robust domestic payments system like the unified payments interface in the Indian context, which makes it technologically possible to make cross-border payments seamless and cheap, Sankar said while speaking at the Global Fintech Fest here.
"I think it is a question of willingness. It's not a question of lack of knowledge or lack of technology. And it's a question of commitment of policymakers across the globe, that we need to find a solution, and you should be open enough to look for the solutions outside the existing correspondent banking system," he said.
Sankar also advocated that the best way for the Fintech industry to function will be the establishment of a robust self-regulatory organisation (SRO).
He said the fintech firms should focus on coming out with products and services that are beneficial to society, address a felt need and do their business responsibly.
Sankar said innovation holds immense promise but pitched for a balanced evolution where innovation is responsible and inclusive.