February 20, 2024
phnom penh – Cambodia and India are close to launching cross-border QR services, a move aimed at further strengthening economic ties, boosting trade and investment, and benefiting tourists.
National Bank of Cambodia (NBC) and NPCI International Payments Limited (NIPL), a wholly-owned subsidiary of National Payments Corporation of India (NPCI), have signed a memorandum of understanding (MoU) to facilitate cross-border payments and remittances. Ryogoku.
The virtual signing ceremony was presided over by NBC Governor Chia Seley and NIPL CEO Ritesh Shukla on March 17, 2023.
According to a press release from the central bank, the agreement establishes a cooperation framework that will allow the parties to consider and discuss various technical, commercial and operational aspects to develop digital connectivity and interoperability. It is intended to.
“The Memorandum of Understanding signed between the two parties will significantly benefit the people of both countries, providing them with access to a safe, convenient, affordable and legitimate channel for cross-border payments and remittances,” the bank said. Stated. In a meeting with NPCI officials in Mumbai, India, on February 16, he called on the company to speed up the process of implementing the system.
“The meeting was held to facilitate the implementation of the cross-border settlement project between Cambodia and India, ensure that the project is complete and comprehensive, and reflect the preparedness of both sides,” NBC said. Ta.
At a workshop entitled “Financial Technology (FinTech) Development Policy 2023-2028” held in Phnom Penh in October, Serey highlighted the implementation of a blockchain-based Bacon system by the central bank. The system facilitates seamless transactions between financial institutions via QR codes and is currently in service. The number of users is over 10 million.
Mr Selly highlighted how fintech has strengthened the country’s banking sector, particularly through the introduction of user-friendly, efficient and affordable digital payment systems.
“[Bakong] It has streamlined the country’s banking infrastructure and revolutionized international trade,” she said.
He also noted that Cambodia has already established cross-border payment relationships with Thailand, Laos and Vietnam.
“[Fintech] International remittances have become faster, more affordable and transparent, particularly benefiting Cambodians abroad,” Serey added.
Devyani Khobragad, the Indian Ambassador to Cambodia, said at the inauguration of the Indian Chamber of Commerce and Industry in Cambodia (IBCC) in late January that the two countries enjoy good political relations.
He pointed to India’s status as one of the world’s fastest growing economies and highlighted the opportunity to leverage this confidence to boost business and investment.
“Trade and investment between the two countries has become a key priority for the Indian government, as evidenced by the steady growth in bilateral trade over the past four years. Further support. [AIFTA]. “The two countries’ ministries of commerce established a joint working group and held its first meeting in July 2022,” Khobragard said.
“We are also exploring bilateral investment and free trade agreements.” [FTA] We recently signed the first draft of a double taxation agreement. [DTA]. Additionally, we are working with NBC to facilitate cross-border payments,” she added.
According to the Directorate General of Customs and Consumer Affairs (GDCE), bilateral trade between Cambodia and India has steadily increased, reaching nearly $485.7 million in 2023, an increase of 10% compared to 2022.
Saudi exports to India increased by more than 49% in 2023, reaching more than $293 million, while total imports from India decreased by 20.85% to $440 million.
India will host around 68,836 Indian tourists in 2023, up more than 102% from 34,016 the previous year, according to data from the Ministry of Tourism.