KATHMANDU, Sept 15: Nepal Rastra Bank (NRB) and Reserve Bank of India (RBI) have signed a memorandum of understanding (MoU) to increase supervisory cooperation between the two central banks.
Issuing a statement, RBI said that the two central banks signed "Supervisory Cooperation and Exchange of Supervisory Information" at India's central regulatory bank's Mumbai-based headquarters on Monday. Narayan Prasad Paudel, executive director of NRB, and Meena Hemchandra, executive director of RBI, signed the MoU on behalf of their respective institutions.
NRB Spokesperson Trilochan Pangeni told Republica that implementation of the agreement will promote greater cooperation and share supervisory information between the two central banks. "NRB and RBI have similar supervisory system.
The agreement will pave the way for the two countries to share knowledge and information on supervision of banking system," Pangeni, who is also the executive director of NRB, said. "The agreement on cooperation and sharing of supervisory knowledge and information is more significant given the fact that there is open border between the two countries which also allow open financial transactions between their people and companies," he added.