(CTN NEWS) – The Reserve Bank of India and the Central Bank of UAE (CBUAE) have recently entered into two Memoranda of Understanding (MoUs) on July 15th.
Boosting Cross-Border Transactions: MoUs for Local Currency Utilization and Payment System Integration
These MoUs aim to enhance the utilization of local currencies, namely the Indian rupee (INR) and the UAE Dirham (AED), for cross-border transactions, as well as establish a connection between their payment systems.
The Unified Payments Interface (UPI) and the Instant Payment Platform (IPP) of UAE.
Under these MoUs, both central banks have agreed to collaborate in developing a unified framework that promotes the use of local currencies for cross-border transactions.
This cooperation will contribute to strengthening financial ties and facilitating smoother transactions between India and the UAE.
Furthermore, the second MoU focuses on integrating the payment and messaging systems of the respective central banks with UPI and IPP.
Advancing Payment Integration: Enhancing Efficiency and Interoperability for Cross-Border Transactions
This interlinking will enhance the efficiency and interoperability of payment services, benefiting individuals and businesses involved in cross-border transactions between the two countries.
By signing these MoUs, the Reserve Bank of India and the Central Bank of UAE have demonstrated their commitment to fostering closer financial cooperation and promoting seamless cross-border transactions using local currencies.
While also leveraging advanced payment systems to streamline payment processes.
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