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India, Philippines ink MoU for FinTech collaboration

2023-06-21

An Memorandum of Understanding (MOU) on Financial Technology (fintech) cooperation was signed in Manila. The MOU was signed by Shambhu S Kumaran, Ambassador of India to the Philippines, and Benjamin E Diokno, Secretary of the Department of Finance (DOF).

According to the MOU, a Joint Working Group (JWG) will be formed, co-chaired by undersecretaries from the Ministries of Finance. The JWG will include senior representatives from Foreign and IT Ministries, Central Banks, financial sector regulatory institutions, and other related agencies.

The JWG's main objective will be to identify specific measures for partnership in various areas such as innovative technologies, the fintech industry, digital governance, payment linkages, creation of interoperable APIs, financial inclusion, and other related areas.

During the signing ceremony, Kumaran mentioned that Prime Minister Narendra Modi of India and President Ferdinand R Marcos Jr. had discussed the importance of partnership in the digital economy, particularly in the financial sector. Kumaran highlighted that the MOU would establish an institutional framework for cooperation in three key areas: digitalisation of payments, direct benefit transfer using national ID, and financial inclusion.

Kumaran expressed his hope that the MOU would facilitate a connection between India's flourishing financial sector ecosystem, which has made significant progress, and the rapidly growing sector in the Philippines. He emphasised that India's digital payments had experienced remarkable growth, reaching nearly Rs 100 billion per year, with the Unified Payment Interface (UPI) playing a crucial role in driving a cashless economy. The MOU would allow the Philippines to adopt India's best practices in this field.

Philippines Finance Secretary Benjamin E Diokno acknowledged that the administration of President Marcos Jr. prioritised digital transformation. He stated that the MOU marked a significant milestone and presented limitless opportunities for cooperation. India, being an emerging economic powerhouse with expertise in digital technologies, and the Philippines, with its young and tech-savvy talent pool, would complement each other in succeeding in the digital economy.

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