<h4>Introduction to Cross-Border Payments</h4><p><strong>Cross-Border Payments (CBPs)</strong> refer to financial transactions where the payer and the recipient are located in different countries. These payments are crucial for international trade, remittances, and global economic integration.</p><p>The efficiency of these systems directly impacts global commerce and the financial well-being of individuals and businesses engaged in international activities.</p><h4>FSB's Emphasis on Inefficiencies</h4><p>The <strong>Financial Stability Board (FSB)</strong>, an international body that monitors and makes recommendations about the global financial system, has highlighted a pressing concern. The FSB has strongly emphasised the urgent need to address existing <strong>inefficiencies</strong> within current cross-border payment systems.</p><div class='info-box'><p>The <strong>FSB's mandate</strong> is to promote global financial stability by coordinating national financial authorities and international standard-setting bodies.</p></div><h4>Growing Market and Critical Focus</h4><p>The global cross-border payments market is experiencing rapid growth. Projections indicate that this market is set to nearly <strong>double by 2032</strong>, signifying a massive increase in transaction volume and value.</p><div class='key-point-box'><p>This significant growth trajectory makes the improvement of existing cross-border payment systems a <strong>critical focus</strong> for international financial bodies and national governments alike.</p></div><div class='exam-tip-box'><p><strong>UPSC Insight:</strong> Reports and recommendations from bodies like the <strong>FSB</strong> are important for understanding global economic trends and potential policy interventions. They often feature in <strong>GS-III Economy</strong> questions related to financial sector reforms or international economic institutions.</p></div>