Singapore Central Bank, India’s IFSCA To Pursue Fintech Innovations: A FinTech Co-operation Agreement was signed by the International Financial Services Centres Authority (IFSCA) and the Monetary Authority of Singapore (MAS) to promote regulatory cooperation and partnership in FinTech technologies.
FinTech Co-operation Agreement: Key Points
- In order to promote the testing of technological breakthroughs, the agreement is anticipated to make use of the regulatory sandboxes already in place in each party’s jurisdiction. Companies will be referred to each other’s regulatory sandboxes as a part of it, allowing for creative cross-border trials in both jurisdictions.
- In accordance with the agreement, both organizations will be able to assess the feasibility of use cases that can benefit from cooperation across various jurisdictions and invite relevant and important jurisdictions to take part in a Global Regulatory Sandbox.
- Information exchange will also be a crucial component of the pact.
- International Financial Services Centres Authority (IFSCA) and the Monetary Authority of Singapore (MAS) will collaborate on cooperative innovation projects, communicate non-supervisory information and developments on financial product and service innovation, and enable talks on new FinTech concerns.
- The Memorandum of Understanding on Supervisory Co-operation signed between MAS and IFSCA in July 2022 serves as the foundation for this cooperation agreement. The operationalization of a large framework for collaboration for FinTech use cases involving several jurisdictions would be made possible by the cross-border testing of use cases between Singapore and India.
- The Monetary Authority of Singapore (MAS) is Singapore’s integrated financial regulator and central bank.
- With the help of regulatory sandboxes, this agreement ushers in a FinTech Bridge that will act as a landing pad for Singaporean FinTechs in India and a launch pad for Indian FinTechs in Singapore. The Worldwide Regulatory Sandbox presents the FinTech Ecosystem with the option of global cooperation on appropriate use cases.
What is International Financial Services Centres Authority?
- The International Financial Services Centres Authority (IFSCA) is a centralized organization responsible for the development and supervision of financial services, financial institutions, and financial products in the Indian International Financial Services Centers.
- The IFSCA’s key goals are to forge close ties across the globe, concentrate on the requirements of the Indian economy, and act as an international financial platform for both the entire region and the entire world economy.
- The first International Financial Services Center in India, GIFT-IFSC is located at Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
|Current Affairs April 2022|