India’s Cabinet has approved a memorandum of understanding (MoU) signed between India and Singapore, which will form a joint working group that will strengthen bilateral cooperation in developing financial technology (fintech).

The MoU will guide India’s and Singapore’s efforts in aligning their regulatory regime, creating common standards, and exchanging best practices on policies regarding fintech, Times of India reported.

The joint working group will encourage entrepreneurs and start-ups from both countries to develop fintech solutions for their business sectors, including insurance, banking, and others. It will be co-chaired by Ravi Mittal, additional secretary of India’s Department of Financial Services (DFS), and Jacqueline Loh, MAS deputy managing director.

Projects include regulatory sandboxes, application programming interfaces (APIs), secure payments, and digital cashflow.

Data standards and security measures will be developed to build capacity in addressing new threats surrounding cyber security and financial fraud.

Partnering with Singapore will also bring India closer to the rest of ASEAN, in terms of digital governance, financial inclusion, and working towards the realisation of the ASEAN Financial Innovation Network (AFIN) agenda.