The Reserve Bank of India (RBI) has said that geopolitical risks — including sanctions and restrictions on financial systems — have emerged as major factors shaping the future of cross-border payments.

“Geopolitical tensions pose significant risks to cross-border payments and financial flows, given the centralised nature of global financial infrastructure and dependence on a few settlement currencies,” the RBI said in its latest report on payment systems.

According to the central bank, sanctions, financial restrictions, and other operational barriers can disrupt market access and payment channels. In response, some affected countries are exploring bilateral or multilateral alternatives to reduce their exposure to such disruptions.

As part of its Payments Vision Document 2025, the RBI sa

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