KATHMANDU: Nepal Rastra Bank (NRB) and Reserve Bank of India (RBI) have signed a memorandum of understanding (MoU) to increase the supervisory cooperation between the two central banks.

Issuing a statement, the RBI said that the two central banks signed the MoU on ‘Supervisory Cooperation and Exchange of Supervisory Information’ on Monday at the RBI headquarters in Mumbai. Narayan Prasad Paudel, executive director of NRB, and Meena Hemchandra, executive director of RBI, signed the MoU on behalf of their respective central banks.

The agreement will pave the way for the two countries to share knowledge and supervisory information of the banking system, as per the MoU.