RBI and Bank Indonesia agree to expand cooperation in payment systems

The Reserve Bank of India and Bank Indonesia on Saturday reached an agreement to expand cooperation in payment systems, digital financial innovation, anti-money laundering and counter-terrorist financing (AML-CFT).

The two central banks signed a memorandum of understanding in Bali on the sidelines of the G20 finance ministers and central bank governors meeting to enhance mutual cooperation.

“With this Memorandum of Understanding, RBI and RBI are committed to deepening the relationship between the two central banks and to enhancing information exchange and cooperation in the field of central banking, including payment systems, digital innovation in payment services and the regulatory and supervisory framework for AML-CFT,” the RBI said in a statement.

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The MoU will be implemented through political dialogue, technical cooperation, information exchange and joint work. It was signed by RBI Deputy Governor Michael Debabrata Patra and BI Deputy Governor Dody Budi Waluyo in the presence of RBI Governor Shaktikanta Das and BI Governor Perry Warjiyo.

“This MoU is an important milestone in the relationship between Bank Indonesia and the Reserve Bank of India. It has been a long time since we have started to cooperate productively, and this MoU will only ensure stronger collaboration in the future.

“Going forward, I am confident that such an excellent partnership will yield fruitful results that will benefit both the central banks and the peoples of both nations, Governor Warjiyo said.

RBI Governor Shaktikanta Das noted that “this MoU is a step forward in bringing our joint efforts into a formal mechanism.”

He also expressed hope that “going forward, the MoU will allow us to further deepen our relationship and facilitate our efforts to make our financial systems accessible, inclusive and secure.”

The RBI further said that the MoU will also provide a good basis to promote mutual understanding, develop efficient payment systems and achieve cross-border payment connectivity.

Such initiatives, he said, will be executed through regular interaction on recent economic and financial developments and issues; technical cooperation through joint training and seminars; and joint work to explore the establishment of cross-border retail payment links.

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