Union Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) Governor Sanjay Malhotra co-chaired the BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting in Jaipur on August 12-13. The discussions focused on financial stability, cooperation among central banks, fintech, cross-border payments and broader economic resilience. The two-day meeting brought together key policymakers to deliberate on financial and economic issues affecting BRICS nations. During the gathering, Malhotra stressed the importance of central banks in maintaining stability and highlighted the need for stronger cooperation among monetary authorities.

The RBI said Malhotra noted the crucial responsibility central banks have in safeguarding both price and financial stability. Greater coordination between central banks, according to the Governor, can help strengthen financial systems and make them more resilient and inclusive.

“The Governor highlighted the pivotal role central banks play in maintaining price and financial stability. Cooperation between central banks is crucial for building a resilient, efficient and inclusive financial system,” the RBI said on X.

Malhotra also recognised several initiatives undertaken through institutional mechanisms covering important areas of the financial sector. “He appreciated the work done by the central bank workstreams in the areas of information security, fintech, cross-border payments, sustainable finance, capacity building and contingent reserve arrangement,” the RBI stated.

These areas have become increasingly important as financial systems deal with rapid technological changes, evolving payment networks and heightened global economic uncertainties.

Sitharaman Meets Indonesia’s Vice Finance Minister

Alongside the BRICS meeting, Sitharaman held a bilateral discussion with Indonesia’s Vice Minister of Finance Juda Agung in Jaipur on August 12. The meeting centred on financial sector development and ways to deepen cooperation between India and Indonesia.

The talks took place on the sidelines of the BRICS FMCBG meeting, with both sides reviewing avenues for expanding economic and financial engagement. “Union Minister for Finance & Corporate Affairs Smt. @nsitharaman met H.E. Mr. Juda Agung, Vice Minister of Finance of Indonesia, on the sidelines of the BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting in Jaipur, Rajasthan, yesterday,” the Ministry of Finance said on X.

Sitharaman also pointed to the momentum in bilateral ties following recent high-level diplomatic engagements between the two countries.

“FM Smt. @nsitharaman noted that Prime Minister Shri @narendramodi’s State Visit to Indonesia last month has taken the Comprehensive Strategic Partnership into its ‘golden era’,” the ministry stated.

India-Indonesia Talks Cover Financial Cooperation

The discussions also examined ways to strengthen institutional cooperation in financial services. Both countries considered opportunities for knowledge sharing, particularly in the development and operation of financial centres.

“The two leaders discussed issues related to financial sector development; closer collaboration in international financial services, including knowledge exchange on setting up and running financial centres; the India-Indonesia Economic and Financial Dialogue; stronger trade ties; and local currency transactions,” the Ministry noted.

The dialogue reflects efforts by India and Indonesia to expand economic ties beyond conventional trade and build stronger financial linkages.

Focus On Global South And Economic Resilience

The two sides also discussed cooperation at multilateral institutions, with both countries seeking closer coordination as members of the Global South.

“Both sides agreed that, as two like-minded members of the Global South, India and Indonesia should continue to work closely within multilateral institutions. H.E. Mr. Juda Agung appreciated India’s strong economic growth and resilience,” the ministry noted.

Global economic uncertainty was another key theme of the conversation. India and Indonesia stressed the importance of maintaining growth while strengthening the foundations of macroeconomic stability.

“Both sides underlined the importance of sustaining growth amid global uncertainties, noting that structural reforms, continued infrastructure investment and Digital Public Infrastructure, are all critical to strengthening macroeconomic stability,” the Ministry of Finance noted.

(With Agency Inputs)

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