RBI, UAE's central bank sign MoUs to promote local currencies, UPI for cross-border transactions
UPI with the Instant Payment Platform (IPP) of UAE. According to the MoUs signed between the two central banks, both of them would now help each other in establishing a common framework for the promotion of the use of local currencies, i.e, the Indian rupee (INR) and the UAE Dirham (AED) for cross-border transactions.
While the next MoU would help the banks in interlinking their payment and messaging system with UPI and IPP. "The MoU on establishing a framework for the use of local currencies for transactions between India and UAE aims to put in place a Local Currency Settlement System (LCSS) to promote the use of INR and AED bilaterally," the RBI press release said.
The MoUs were signed by the Governor of the Reserve Bank of India Shaktikanta Das and the Governor of the Central Bank of UAE Khaled Mohamed Balama. Also, the MoUs were exchanged between the two Governors in the presence of Prime Minister Narendra Modi and UAE President Sheikh Mohamed Bin Zayed Al Nahyan.
Read more on livemint.com
