The MoU was inked on July 9 during India-Korea Business Forum, between Bank of Baroda MD & CEO P S Jayakumar and Yoon Jong-kyum Chairman, KB Financial Group.
Public sector lender Bank of BarodaÂ on Wednesday said it has inked an agreement with South Korea's KB Financial Group to set-up financing corridor and development of digital payment ecosystem.
"Bank of Baroda signed a Memorandum of Understanding (MoU) with KB Financial Group Inc (KBFG), Korea, for comprehensive business cooperation between the two organisations to establish In-Ko financing corridor and development of innovative digital payment eco-system," the bank said in a release.
"Through this engagement, Bank of Baroda and KB Financial Group will work together on creating a new digital payments ecosystem in India and creating the In-Ko corridor for providing reciprocal financial services to corporate and retail Clients of Bank of Baroda and KB Financial Group," Jayakumar said in the statement.
He said the bank will work jointly with KB Financial Group by leveraging the potential synergies generated between Bank of Baroda's diverse domestic network and KB's business relations with Korean conglomerates.
In line with India's vision of look east and digital India, the proposed In-Ko corridor will have two legs-- corporate and retail. The former will comprise of corporate finance, trade finance, correspondent banking relationship and establishing aÂ dedicated Korean desk at the bank.
The retail leg will include local currency accounts, remittance facilities, digital payment services and financial assistance for consumption and asset purchase.
KB Financial Group and its subsidiaries, including KB Kookmin Bank and, KB Kookmin Card Co Ltd, provide a broad range of banking and related financial services to consumers and corporations primarily in Korea.