RBI and Bank Indonesia to increase collaboration in payment systems

18 Jul 2022 , 02:35 PM

An agreement was reached on Saturday between the Reserve Bank of India and Bank Indonesia to increase collaboration in payment systems, digital financial innovation, anti-money laundering, and countering the funding of terrorism (AML-CFT). On the side lines of the G20 Finance Ministers and Central Bank Governors Meeting in Bali, the two central banks agreed to a Memorandum of Understanding (MoU) to further their mutual cooperation.

According to a statement from the RBI, "With this MoU, RBI and BI committed to deepen relations between both central banks and strengthen information sharing and cooperation in the area of central banking, including payment systems, digital innovation in payments services, and regulatory and supervisory framework for AML-CFT."

RBI and Bank Indonesia concur to increase their collaboration in payment systems.

The MoU will also serve as a solid foundation for fostering intercultural understanding, creating effective payment systems, and attaining cross-border payment connectivity, according to the RBI.

According to the statement, such measures will be carried out through a routine discussion of current financial and economic concerns and trends, technical collaboration through training and joint seminars, and cooperative work to investigate the creation of cross-border retail payment linkages.

In the future, Governor Warjiyo is confident that such a great relationship will produce successful results that will benefit both central banks and the people of both countries.

Shaktikanta Das, governor of the RBI, said that "this MoU is a step forward in formalising our cooperative efforts."

He said that he hoped "the MoU will enable us to further strengthen our cooperation and facilitate our effort to make our financial systems open, inclusive, and secure" in the future.