The Reserve Bank of India (RBI) and the Bank Indonesia (BI) signed a Memorandum of Understanding (MoU) on Saturday in Bali, Indonesia, to improve mutual cooperation between them.

With this MoU, RBI and BI committed to deepening relations between the two central banks and strengthening the exchange of information and cooperation in the area of central banking, including payment systems, digital innovation in payments services, and regulatory and supervisory framework for Anti Money Laundering and Combating the Financing of Terrorism (AML-CFT), RBI said in a statement.

The MoU, which was signed by RBI Deputy Governor Michael Debabrata Patra and BI Deputy Governor Dody Budi Waluyo on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting, will be implemented through policy dialogue, technical cooperation, exchange of information, and joint work, it added.

Promoting mutual understanding

The MoU will also provide a good basis for promoting mutual understanding, developing efficient payment systems, and achieving cross-border payment connectivity.

RBI Governor Shaktikanta Das noted that “given our shared goals and challenges, it is only natural that we work together in many areas”.

“This MoU is a step forward in putting our joint efforts within a formal mechanism,” he said. He also expressed the hope that “going ahead, the MoU will enable us to further deepen our relations and facilitate our endeavour to make our financial systems accessible, inclusive and secure.”

BI Governor Perry Warjiyo emphasised that “this MoU serves as a significant milestone in the relation between Bank Indonesia and RBI. It has been a long period of time since we began cooperating productively, and this MoU will only ensure a more solid collaboration in the future.”

Warjiyo added, “Going forward, I am convinced that such excellent partnership will result in fruitful outcomes that benefit both central banks and the people of both nations.”

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