The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for entering into the Memorandum of Understanding (MoU) between India and International Monetary Fund (IMF) for setting up of South Asia Regional Training and Technical Assistance Center (SARTTAC) in India by the IMF. It also authorised the Finance Minister to approve related decisions in respect of India’s contribution for setting up of the centre, including Letter of Understanding for financial contribution by India, site of the SARTTAC, representative of India on the Steering Committee on SARTTAC, etc.

The SARTTAC will be a collaborative venture between the IMF, the member countries that is Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and development partners for supporting the capacity development needs of the members. Additional member countries could join SARTTAC at a later stage. SARTTAC will also selectively cater to the capacity building needs at the State level, especially in India.

The IMF is organising a Regional Conference on ‘Advancing Asia: Investing for the Future’ in New Delhi. The MoU may be entered into during this Conference.

The MoU will help in capacity building of Government officials including state level in macro, fiscal, monetary policies by the IMF and greater coordination between the six member countries of South Asia.

Capacity development at Central and State level in fiscal and financial policies will enhance revenue mobilization and development of policies aimed at more effective public and financial management. This will result in economic development and inclusive growth in the country.

Capacity development by the IMF will bring in the best practices from across the globe, as well as the South Asian region, resulting in innovative solutions to fiscal, monetary and financial issues and effective response through use of IT and innovative techniques.

Memorandum of Understanding for regional training centre advances capacity building and authorises India's financial contribution. Approval is granted for entering into a Memorandum of Understanding between India and the IMF to establish the South Asia Regional Training and Technical Assistance Center (SARTTAC) in India, authorising the Finance Minister to finalise India's financial contribution via a Letter of Understanding, the SARTTAC site, and India's representative on the Steering Committee, with membership comprising Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and provision for additional members.