Agree on trade agreement and UPI-IPP linking in their currencies; Important agreement signed in RBI-UAE Central Bank
The Reserve Bank of India and the Central Bank of the United Arab Emirates (UAE) on Saturday signed two MoUs for cooperation in the use of local currencies for cross-border transactions and for interconnecting their payment and messaging systems.
Time to Read 3 Min
PM Modi has reached UAE today on a one-day visit. Here he held wide-ranging talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan to further deepen the multi-faceted bilateral ties. During this, both the countries have agreed to start a trade agreement in their currencies. Let us tell you that after completing a two-day visit to France, PM Modi reached Abu Dhabi on Saturday morning.
20 percent increase in India-UAE trade
After talks with the UAE President, Modi said India-UAE trade has seen a 20 percent growth since the signing of the Comprehensive Economic Partnership Agreement last year. For the first time, we have achieved a target of US$ 85 billion in trade. Soon we will achieve the target of US$ 100 billion.
Agreement will give a boost to bilateral trade and investment
PM Modi said, if we are determined, we can cross this milestone before the G20. The agreement signed on Saturday for settlement of trade in the currencies of the two countries reflects the strong economic cooperation and mutual trust between the two countries. The agreement will boost bilateral trade and investment.
During his visit to the UAE, Modi told Sheikh Mohamed bin Zayed Al Nahyan, "You always got brotherly love." You have a great contribution in the way the relations between our countries have expanded. Everyone in India sees you as a true friend. Modi also said that preparations for the COP-28 to be held in the UAE are underway under the leadership of the UAE President. He has made up his mind to attend the conference later this year.
Two agreements signed between RBI-UAE Central Bank
The Reserve Bank of India and the Central Bank of the United Arab Emirates (UAE) on Saturday signed two MoUs for cooperation in the use of local currencies for cross-border transactions and for interconnecting their payment and messaging systems. The two memorandums of understanding (MoUs) were exchanged in Abu Dhabi in the presence of PM Modi and UAE President Mohamed bin Zayed Al Nahyan.
This is the purpose of agreements
These agreements aim to facilitate seamless cross-border transactions and payments and promote greater economic cooperation between India and the UAE. This is a very important aspect of India-UAE cooperation, Modi said. It paves the way for enhanced economic cooperation and will simplify international financial interactions. The MoU was signed by Shaktikanta Das, Governor of Reserve Bank of India and Khalid Mohammed Balama, Governor of Central Bank of UAE.
UPI-IPP linking also agreed
Under the MoU on Payments and Messaging Systems, both the central banks agreed to cooperate on linking their Fast Payment Systems (FPS) - India's UPI with UAE's Instant Payment Platform (IPP). It will link the respective card switches (Rupay Switch and UAESwitch) and India's payment messaging system ie Structured Financial Messaging System (SFMS) with the messaging system in UAE.