**Executive Summary**
The Reserve Bank of India (RBI) and the State Bank of Vietnam (SBV) signed a Memorandum of Understanding (MoU) on May 5, 2026, to bolster bilateral cooperation in financial innovation and digital payments. This agreement establishes a framework for regulatory coordination and information sharing, specifically targeting the development of cross-border QR code-based merchant payments. The partnership aims to enhance transaction transparency and efficiency while positioning India as a prominent global fintech hub.
**Key Points / Main Content**
**Framework for Collaboration**
* Establishes a formal statement of intent between the RBI and SBV to cooperate on financial innovation and digital payment programs.
* Provides a broad mechanism for information exchange and implementation support within the limits of each party's applicable laws and regulations.
* Envisages joint programs and projects focusing on fast payment systems, messaging systems, and card switches.
**Regulatory and Technical Scope**
* Involves sharing information on emerging market trends, standards, and best practices in digital payments.
* Covers the exchange of regulatory frameworks pertaining to innovative technologies and digital financial services.
* Focuses on the development and oversight of digital payment systems to ensure smooth cross-border financial activities.
**Cross-Border Payment Connectivity**
* Prioritizes the development of connectivity to enable QR code-based merchant payments between India and Vietnam.
* Aims to improve processing efficiency for cross-border transactions, making them real-time and cost-efficient.
* Ensures transaction transparency through the upfront display of charges for users.
**Impact Analysis**
**Reserve Bank of India (RBI) and State Bank of Vietnam (SBV)**
**Impact**
The central banks are now part of a formal regulatory cooperation framework that facilitates information sharing on fintech trends and oversight.
**Action Required**
Coordinate on the implementation of the MoU and establish the technical and regulatory infrastructure for joint payment projects.
**Indian and Vietnamese Businesses/Merchants**
**Impact**
Businesses will benefit from greater export opportunities and a more efficient, transparent environment for cross-border financial activities.
**Action Required**
Prepare to integrate and utilize new QR code-based payment systems to facilitate international merchant transactions.
**Tourists and Consumers**
**Impact**
Travelers between the two nations will gain access to more convenient, real-time, and transparent payment methods.
**Action Required**
Utilize the newly established digital payment linkages for cross-border transactions once the systems are operational.
Key Entities Referenced
Reserve Bank of India (RBI): The central banking institution of India that signed the MoU to promote bilateral cooperation in financial innovation and digital payments.
State Bank of Vietnam (SBV): The central bank of Vietnam that partnered with the RBI to enhance cross-border payment linkages and regulatory coordination.
QR Code-based Cross-Border Payment Systems: A key initiative under the MoU aimed at establishing connectivity between the two countries to enable seamless merchant transactions.
Union Cabinet: The supreme decision-making body of the Government of India which granted approval for the signing of the Memorandum of Understanding.
Ministry of Finance
RBI and State Bank of Vietnam Sign MoU on May
5, 2026 to Strengthen Digital Payments and
Financial Innovation
MoU to strengthen bilateral cooperation in financial
innovation and digital payments, with potential to enhance
cross-border payment linkages and position India as a major
fintech hub
India–Vietnam Partnership to Expand QR Code-Based Cross-
Border Payment Systems
Posted On: 29 MAY 2026 6:34PM by PIB Delhi
The Reserve Bank of India and the State Bank of Vietnam on 05.05.2026 signed a Memorandum of
Understanding (MoU) to promote cooperation in financial innovation and digital payments, including
information sharing, regulatory coordination, and payment system connectivity for cross-border QR Code-
based merchant payments.
The MoU marks a forward-looking and substantive step towards strengthening bilateral cooperation in
financial innovation and digital payments, with potential to enhance cross-border payment linkages and
position India as a major fintech hub.
With the approval of the Union Cabinet, the Reserve Bank of India (RBI) and the State Bank of Vietnam
(SBV) signed a Memorandum of Understanding (MoU) on 05.05.2026 for cooperation in financial
innovation and digital payments. The Reserve Bank of India (RBI) and the State Bank of Vietnam (SBV)
aim to deepen cooperation in areas of financial innovations and digital payments by facilitating potential
joint innovation and digital payment programs and projects, including the development of connectivity in
payments system to enable cross-border transactions between the two countries for QR code-based
merchant payments.
Brief of the MoU
i. The MoU is a statement of intent between RBI and SBV to cooperate in the area of financial
innovation and digital payments. It is intended to provide a broad framework for
collaboration, information exchange and implementation support, to the extent permitted by
the applicable laws, rules and regulations governing the two Parties.
ii. The scope of cooperation under the MoU covers, inter alia, information sharing on emerging
market trends and developments, standards and best practices in digital payments and
innovative technologies, regulatory frameworks pertaining to innovations, and the
development and oversight of digital payments in financial services. The MoU also providesfor potential joint programmes and projects, including payment system connectivity for cross-
border QR Code-based merchant payments between India and Viet Nam.
iii. MoU is expected to enable greater efficiency in processing of cross-border transaction
between two countries and make these transactions a transparent (upfront display of charges),
convenient, real-time manner, and more cost-efficient. Also, facilitate trade and tourism
between two countries to provide greater export opportunities to businesses in India.
iv. The Deputy Governor, RBI and the Deputy Governor, SBV, have signed the MoU.
Major impact, including employment generation potential
This Memorandum of Understanding between the Reserve Bank of India and the State Bank of Vietnam,
is primarily a regulatory cooperation framework that is essential for maintaining smooth cross-border
financial activities. It essentially envisages a mechanism for cooperation and information exchange in the
area of fast payment systems, messaging system and card switches.
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