Andhra Pradesh, Singapore’s MAS pact for financial services

Andhra Pradesh government signed an agreement with the Monetary Authority of Singapore (MAS) to promote innovation in financial services in their respective markets.

About MAS :

The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory  It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.

• The MAS was founded in 1971 to oversee various monetary functions associated with banking and finance. Before its establishment, monetary functions were performed by government departments and agencies.
• As Singapore progressed, an increasingly complex banking and monetary environment required more dynamic and coherent monetary administration.
• Therefore, in 1970, the Parliament of Singapore passed the Monetary Authority of Singapore Act leading to the formation of MAS on 1 January 1971. The act gives MAS the authority to regulate all elements of monetary policy, banking, and finance in Singapore.
• In April 1977, the Government decided to bring the regulation of the insurance industry under the wing of the MAS and in September 1984 the regulatory functions under the Securities Industry Act (1973) were also transferred to MAS. This means that unlike many other central banks, MAS is also the financial regulatory authority for Singapore.
• The MAS has been given powers to act as a banker to, and financial agent of, the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.
• Following its merger with the Board of Commissioners of Currency on 1 October 2002, the MAS assumed the function of currency issuance.
• MAS has the exclusive right to issue banknotes and coins in the Republic of Singapore. Their dimensions, designs and denominations are determined by the Monetary Policy Committee with Government approval.
• The banknotes and coins thus issued have the status of legal tender within the country for all transactions, both public and private, without limitation.

About the Agreement,

Under the FinTech Cooperation Agreement, MAS and the state government will explore joint innovation projects on technologies such as digital payments and block-chain, collaborate on development of education programmes and curricula on fintech (financial technologies).

• The Singapore’s central bank (MAS) and the Andhra Pradesh government have also agreed to discuss emerging FinTech trends and exchange views on regulatory issues related to innovations in financial services.
• This agreement will pave way for greater FinTech collaboration between Singapore and Andhra Pradesh. We are looking to create a market place in India for FinTech solutions developed in Singapore.
• The knowledge exchange between the startups in Singapore and Visakhapatnam will not only create high-quality job opportunities in FinTech but also help provide market access for implementation in both countries.