Cabinet approves India-Singapore MoU on setting up of a joint FinTech working group

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its ex-post facto approval to the Memorandum of Understanding (MoU) signed between India and Singapore in June 2018 on the constitution of a Joint Working Group (JWG) on FinTech.

The press statement says that the Joint Working Group on FinTech between India and Singapore has been constituted for cooperation in the area of FinTech between the two countries. The collaboration of India with Singapore will benefit both India and Singapore to excel in the fields of Development of Application Programming Interfaces (APls), Regulatory Sandbox, Security in payment and digital cash flow, integration of RuPay-Network for Electronic Transfers (NETS), UPI-FAST payment link, AADHAR Stack and e-KYC in ASEAN region and cooperation on regulations, solutions for financial markets and insurance sector and sandbox models.

Terms of References of the JWG:

1. Promote experience sharing on policies and regulations related to FinTech;
2. Encourage the creation of standards related to the use of data in a non-discriminatory manner by FinTech firms and entities.
3. Initiate capacity building of relevant official(s) in regulatory institutions, including in a world of new threats around cyber-security, financial fraud etc.
4. Promote co-operation between the financial technology industry in India and Singapore; development of FinTech solutions for business/financial sectors
5. Encourage collaboration of entrepreneurship/ startup talent between Singapore and India in FinTech, consistent with the relevant policies of both countries.
6. Develop international standards:

• Encourage the creation of an international version of Application Programming Interfaces (APIs) and standards that are interoperable with the APIs created in public systems in India and Singapore
• Enable cross-border authentication and Electronic Know-Your-Customer (e-KYC) of residents using digital identities
• Enable payment linkages-cooperation between Unified Payment Interface (DPI) and Fast And Secure Transfer (FAST) digital fund transfer platforms
• Enable cross-learning on RuPay Credit/Debit Cards through linkages between National Payments Corporation of India (NPCI) and Network for Electronic Transfers (NETS) payment networks;
• Enable DPI and Quick response (QR) code-based payment acceptance; and
• Enable the use of digital signatures such as through e-Sign, across borders.
• Encourage co-operation between India and Singapore on: Digital governance; Financial inclusion; and partnership in the ASEAN Financial Innovation Network (AFIN) agenda.