The Reserve Bank of India and the State Bank of Vietnam have signed a Memorandum of Understanding (MoU) to promote cooperation in financial innovation and digital payments.
The agreement, which received approval from the Union Cabinet, establishes a framework for collaboration in regulatory coordination, information sharing, and digital payment systems between the two nations.
The MoU, signed on 5 May, is intended to provide a broad framework for collaboration, information exchange and implementation support, to the extent permitted by the applicable laws, rules and regulations governing the two Parties, the Ministry of Finance said in a statement on Friday (29 May)
A key focus of the MoU is the development of payment system connectivity to enable cross-border QR code-based merchant payments between India and Vietnam.
The initiative 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.
The framework will help maintain smooth cross-border financial activities through cooperation in fast payment systems, messaging systems, and card switches.
The agreement aims to establish a framework for cooperation in areas including emerging market trends, innovative technologies, standards and best practices in digital payments, and regulatory frameworks governing financial innovation.
The arrangement also supports the development and oversight of digital payment systems in financial services, while providing a broad framework for collaboration in line with laws and regulations applicable in both countries.
Deputy governors of the RBI and the State Bank of Vietnam signed the MoU, which forms part of broader efforts to strengthen bilateral ties.
The payment connectivity initiative is expected to facilitate trade and tourism between India and Vietnam, whilst creating greater export opportunities for Indian businesses.
Alongside the central bank agreement, NPCI International Payments Limited and Vietnam's National Payment Corporation also established institutional linkages on cross-border QR code interoperability.
The MoU is being viewed as a forward-looking initiative that could enhance bilateral financial ties whilst positioning India as a major fintech hub in the region.
The agreement opens the door for potential joint innovation programmes and projects in the future, supporting India's broader ambitions to expand its digital payments expertise across Southeast Asia.
The signing coincided with efforts by both nations to elevate their relationship to an Enhanced Comprehensive Strategic Partnership, with a bilateral trade target of $25 billion by 2030.