The National Bank of Cambodia (NBC) and NPCI International Payments Limited (NIPL) have signed a Memorandum of Understanding (MOU) to promote cross-border payments and remittances between Cambodia and India.
The MOU signing was formalized virtually on March 17 and was presided over by Chea Serey, NBC Deputy Governor, and Ritesh Shukla, Chief Executive Officer of NIPL.
The aim of the MOU is to establish a collaborative framework that enables both parties to further study and discuss various technical, commercial, operational and other related aspects to develop digital connectivity and interoperability to support cross-border payments and remittances between the two countries, according to a press release posted on NBC’s Facebook page on Monday.
The release added that through the MOU, NBC and NIPL will work together to explore the possibility of enabling real time fund transfers between Cambodia and India. The outcome of this cooperation is believed to provide a major impetus for cross border payment and remittances.
“The MOU signed between the two parties will provide greater benefit for citizens of both countries to safely and conveniently utilize formal channels for cross border payments and remittances at an affordable cost,” stated the NBC press release.
In addition, this connectivity is expected to be a major breakthrough to support the development of economic and financial relations that contribute to stimulating economic, tourism and trade development for both countries in the future.
NIPL is a wholly owned subsidiary of National Payments Corporation of India (NPCI) and focuses on payments across the globe with the use of technology and innovation.
Founded in 2020, it established partnerships with five major banks across the continent such as Discover Financial Services USA, Japan Credit Bureau, Union Pay International China, Royal Monetary Authority of Bhutan and Network for Electronic Transfers, Singapore.
NIPL is focused on transforming payments across the globe with the use of technology and innovation. It not only enables payments for Indians, but also uplifts other countries by enhancing their payment capabilities through technological assistance, consulting and infrastructure, according to its LinkedIn account.
Ky Sereyvath, an economist with the Royal Academy of Cambodia, told Kiripost on Tuesday that the MOU will boost business between the two countries through more convenient money transactions.
“This cooperation is a good cooperation to encourage more convenient payments between Cambodia and India. As we realize that India is a country that produces medical supplies and some consumables that Cambodia has imported,” he said.
Hong Vannak, an economic researcher at the Royal Academy of Cambodia, added that signing an MOU with India is an extra corporation on the bilateral trade between Cambodia-India and diplomatic cooperation.
“If India opens the market for Cambodia, and India is the target market for Cambodia, it will be such a chance for Cambodia to bring products to put on sale, including attracting more Indian investors to invest in Cambodia,” he added.