An agreement was reached 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 sidelines 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.
- By signing this MoU, RBI and BI agreed to improve communication and collaboration in the field of central banking, including payment systems, technological advancements in payment services, and the regulatory and supervisory framework for AML-CFT.
- The MoU will be put into practise through policy discussion, technical collaboration, information sharing, and teamwork.
- In the presence of RBI Governor Shaktikanta Das and BI Governor Perry Warjiyo, it was signed by Deputy Governors of the RBI Michael Debabrata Patra and the BI Dody Budi Waluyo.
- 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 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.
Important Takeaways For All Competitive Exams:
- Reserve Bank of India Governor: Shaktikanta Das
- Bank Indonesia Governor: Perry Warjiyo