RBI, Vietnam Central Bank sign MoU to boost digital payments, cross-border QR transactions

New Delhi, May 29 (IANS) India and Vietnam have taken a major step towards strengthening cooperation in digital payments and financial innovation, with the Reserve Bank of India (RBI) and the State Bank of Vietnam (SBV) signing a Memorandum of Understanding (MoU), the Ministry of Finance said on Friday. 

The agreement, signed with the approval of the Union Cabinet, aims to deepen collaboration in areas such as financial innovation, regulatory coordination, information sharing, and digital payment systems.

A key focus of the MoU is the development of payment system connectivity to enable cross-border QR code-based merchant payments between the two countries.

The MoU is being seen as a forward-looking initiative that could enhance bilateral financial ties while positioning India as a major fintech hub in the region.

It is expected to improve the efficiency of cross-border transactions by making payments more transparent, real-time, convenient, and cost-effective for users and businesses in both countries.

According to the details of the agreement, the RBI and the SBV will cooperate on sharing information related to emerging market trends, innovative technologies, standards and best practices in digital payments, and regulatory frameworks governing financial innovation.

The arrangement will also support the development and oversight of digital payment systems in financial services.

The agreement provides a broad framework for collaboration and implementation support, in line with the laws and regulations applicable in both countries.

It also opens the door for potential joint innovation programmes and projects in the future.

Officials said the payment connectivity initiative is expected to facilitate trade and tourism between India and Vietnam, while creating greater export opportunities for Indian businesses.

The framework will also help maintain smooth cross-border financial activities through cooperation in fast payment systems, messaging systems, and card switches.

The MoU was signed by the Deputy Governors of the RBI and the SBV.