Brunei Darussalam Central Bank (BDCB) and Bank of the Lao P.D.R. (BOL) have joined the RPC initiative, aimed at fostering faster, cheaper, and more inclusive cross-border payments within the ASEAN region, bringing the total number of participating central banks to eight.
3 April 2024 – Brunei Darussalam Central Bank (BDCB) and Bank of the Lao P.D.R. (BOL) have recently joined the Regional Payment Connectivity (RPC) initiative, signaling a significant step towards enhancing financial cooperation within the ASEAN region. The inclusion of BDCB and BOL, bringing the RPC group to a total of eight ASEAN central banks, underscores the commitment to fostering faster, cheaper, and more inclusive cross-border payments.
BDCB signed the second supplemental pages of the Memorandum of Understanding on Cooperation in Regional Payment Connectivity (MOU RPC) on February 29, 2024, while BOL inked the third supplemental pages of MOU RPC on April 3, 2024, during the 11th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting in Luang Prabang, Lao P.D.R. The RPC initiative, which was initiated by the central banks of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in late 2022, has since been joined by Vietnam in August 2023, paving the way for Brunei Darussalam and Lao P.D.R. to join.
The RPC initiative aims to promote faster, cheaper, more transparent, and more inclusive cross-border payments, utilizing technologies such as quick response (QR) code-based payments and fast payment modalities. By facilitating trade, providing access to international markets for small and medium-sized enterprises, and streamlining worker remittance transactions, the RPC initiative is expected to bring significant benefits to the participating economies.
Hajah Rokiah binti Haji Badar, the Managing Director of BDCB, expressed contentment in becoming a signatory to the MOU RPC, emphasizing the potential for advancing cross-border payment connectivity and fostering collaboration with fellow central banks. Similarly, Bounleua Xinxayvoravong, the Governor of BOL, highlighted the significance of the MOU RPC in enhancing ASEAN regional cooperation and supporting economic expansion and sustainability through faster, cheaper financial transactions.
