Sitharaman said the two countries had discussed how digital technologies could be used to simplify financial transactions and make payments more convenient. She said officials from both sides would continue discussions to identify and adopt solutions that can facilitate easier cross-border remittances and provide citizens with multiple digital payment options.

The Finance Minister also shared India's experience with Direct Benefit Transfer (DBT), particularly its use during the COVID-19 pandemic to transfer funds directly to beneficiaries of government schemes. India is looking to share its experience in digital payments and explore areas where the two countries can learn from each other's systems.

Canadian Finance Minister Francois-Philippe Champagne said the financial services sector represents one of the biggest opportunities for closer economic cooperation between India and Canada. He specifically highlighted the need to facilitate payments for Indian students studying in Canada.

According to Champagne, there are around 400,000 Indian students in Canada, and remittances could amount to approximately C$45,000 per student. He said facilitating such transactions would provide significant benefits to students and offer greater peace of mind to their families in India.

The discussions form part of broader efforts by India and Canada to strengthen their economic and financial relationship. The two countries are also exploring cooperation in areas including financial services, fintech, cross-border payments, investment and critical minerals.

The proposed improvements in remittance mechanisms could make it faster, simpler and more convenient for Indian families to support students in Canada, while also creating opportunities for greater integration between the financial systems of the two countries.