Central bank joins regional payment connectivity expansion

The recent development is an expansion of the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC) initiated by the central banks of Indonesia, Malaysia, Philippines, Singapore, and Thailand on the sidelines of the G20 Leaders’ Summit on 14 November 2022 in Bali.

On the sidelines of the 10th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) on August 25 in Jakarta, Vietnam's central bank signed the Supplemental Pages of the MOU RPC.

The RPC initiative was established to strengthen and enhance collaboration on payment connectivity through the development of faster, cheaper, more transparent, and more inclusive cross-border payments.

According to the MoU, member central banks agreed to promote cross-border payment connectivity based on the application of such payment methods as QR Code, instant payment, and other payment models, as well as cooperation in monitoring and building a sound risk management mechanism in line with the legal framework of member countries. Mechanisms for implementing MoU include dialogue, monitoring, evaluation, and information exchanges.

Within the framework of the Working Group on the ASEAN Payments System (WC-PSS), the members highly appreciated this initiative of the five ASEAN central banks (ASEAN5) and encouraged the participation of ASEAN members.

Appreciating the potential benefits and opportunities from the initiative, the SBV coordinated with ASEAN5 central banks to complete the procedures to officially become the 6th member of the MoU, which demonstrates its commitment to cooperation and integration in the payment field, in line with the orientation of the Vietnamese Government and central bank as well as the current trend of promoting cross-border payments.