Cabinet approves India-Singapore MoU to set up fintech joint working group

The government on Wednesday approved an MoU between India and Singapore to constitute a joint working group (JWG) on financial technology (fintech).

The MoU got the clearance during a Cabinet meeting chaired by Prime Minister Narendra Modi here.

As per the pact, both countries will improve their regulatory connect to exchange best practices by sharing experience on policies and regulations related to fintech, an official statement said.

The JWG will encourage collaboration of entrepreneurs and startups of both countries and develop fintech solutions for business/financial sectors.

The MoU will benefit both countries to excel in the fields of development of Application Programming Interfaces (APls), Regulatory Sandbox, security in payment and digital cash flow.

The collaboration will also lead to integration of RuPay-Network for Electronic Transfers (NETS), UPI-FAST payment link, Aadhaar Stack and e-KYC in ASEAN region and cooperation on regulations, solutions for financial markets and insurance sector, it said.

Standards will be created for use of data in non-discriminatory manner by fintech and related entities and capacity building of relevant officials in regulatory institutions in the wake of new threats around cybersecurity and financial frauds, the statement said.

It will also encourage cooperation between India and Singapore on digital governance, financial inclusion and partnership in the ASEAN Financial Innovation Network (AFIN) agenda, the statement added.