Abhishek012
TF Pioneer
UPI/RuPay card linkage: India, UAE agree to settle transactions in local currencies, UPI/RuPay card for cross-border transactions:
The MoU, which was signed by Reserve Bank of India (RBI) Governor Shaktikanta Das and Khaled Mohamed Balama, Governor of the Central Bank of UAE, comes a day after India and France agreed to enable the use of Unified Payments Interface (UPI) in France.
RBI and CBUAE agreed to explore linking of payments messaging systems.
The central bank said that under the MOU on ‘Payments and Messaging Systems’, the two central banks agreed to cooperate on:
(a) linking their Fast Payment Systems (FPSs) – Unified Payments Interface (UPI) of India with Instant Payment Platform (IPP) of UAE;
(b) linking the respective Card Switches (RuPay switch and UAESWITCH); and
(c) exploring the linking of payments messaging systems i.e., Structured Financial Messaging System (SFMS) of India with the messaging system in the UAE.
"The UPI-IPP linkage will enable the users in either country to make fast, convenient, safe, and cost-effective cross-border funds transfers. The linking of Card Switches will facilitate the mutual acceptance of domestic cards and the processing of card transactions. The linkage of messaging systems is aimed to facilitate bilateral financial messaging between the two countries," the RBI said in a statement on July 15.
In April 2022, NIPL announced that BHIM UPI was made live at NEOPAY terminals, the payment subsidiary of Mashreq bank, across the UAE, which aimed at empowering millions of Indians who travel to the UAE to safely and conveniently make payments using BHIM UPI.
PhonePe is already supporting ‘UPI international’ payments in UAE, under which Indian users travelling abroad can pay foreign merchants using UPI. Indian visitors to the UAE and the NRIs settled there can also use UPI-based mobile applications to pay for purchases at merchants and shops in the UAE.
The RBI also said the creation of a local currency settlement system with the UAE would allow traders to invoice and pay in their respective domestic currencies, which in turn would enable the development of a rupee-dirham foreign exchange market.
"The MoU on establishing a framework for the use of local currencies for transactions between India and the UAE, aims to put in place a Local Currency Settlement System to promote the use of INR (Indian rupee) and AED (UAE Dirham) bilaterally," the central bank said.
"The MoU covers all current account transactions and permitted capital account transactions. Creation of the LCSS would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn would enable the development of an INR-AED foreign exchange market," RBI's statement said.
Deepening
-
Comprehensive Strategic Partnership.
Under the MOU on ‘Payments and Messaging Systems’, the two central banks agreed to cooperate on (a) linking their Fast Payment Systems (FPSs) – Unified Payments Interface (#UPI) of India with Instant Payment Platform (IPP) of UAE; (b) linking the respective Card Switches (#RuPay switch and UAESWITCH); and (c) exploring the linking of payments messaging systems i.e., Structured Financial Messaging System (SFMS) of India with the messaging system in the UAE.
India and the United Arab Emirates (UAE) on Saturday signed a Memorandum of Understanding (MoU) to set up a framework to use their respective local currencies to settle bilateral transactions. The countries also agreed upon the Unified Payments Interface (UPI) of India with Instant Payment Platform (IPP) of UAE linkage, which will enable the users in either country to make fast, convenient, safe, and cost-effective cross-border funds transfers.The MoU, which was signed by Reserve Bank of India (RBI) Governor Shaktikanta Das and Khaled Mohamed Balama, Governor of the Central Bank of UAE, comes a day after India and France agreed to enable the use of Unified Payments Interface (UPI) in France.
RBI and CBUAE agreed to explore linking of payments messaging systems.
The central bank said that under the MOU on ‘Payments and Messaging Systems’, the two central banks agreed to cooperate on:
(a) linking their Fast Payment Systems (FPSs) – Unified Payments Interface (UPI) of India with Instant Payment Platform (IPP) of UAE;
(b) linking the respective Card Switches (RuPay switch and UAESWITCH); and
(c) exploring the linking of payments messaging systems i.e., Structured Financial Messaging System (SFMS) of India with the messaging system in the UAE.
"The UPI-IPP linkage will enable the users in either country to make fast, convenient, safe, and cost-effective cross-border funds transfers. The linking of Card Switches will facilitate the mutual acceptance of domestic cards and the processing of card transactions. The linkage of messaging systems is aimed to facilitate bilateral financial messaging between the two countries," the RBI said in a statement on July 15.
In April 2022, NIPL announced that BHIM UPI was made live at NEOPAY terminals, the payment subsidiary of Mashreq bank, across the UAE, which aimed at empowering millions of Indians who travel to the UAE to safely and conveniently make payments using BHIM UPI.
PhonePe is already supporting ‘UPI international’ payments in UAE, under which Indian users travelling abroad can pay foreign merchants using UPI. Indian visitors to the UAE and the NRIs settled there can also use UPI-based mobile applications to pay for purchases at merchants and shops in the UAE.
The RBI also said the creation of a local currency settlement system with the UAE would allow traders to invoice and pay in their respective domestic currencies, which in turn would enable the development of a rupee-dirham foreign exchange market.
"The MoU on establishing a framework for the use of local currencies for transactions between India and the UAE, aims to put in place a Local Currency Settlement System to promote the use of INR (Indian rupee) and AED (UAE Dirham) bilaterally," the central bank said.
"The MoU covers all current account transactions and permitted capital account transactions. Creation of the LCSS would enable exporters and importers to invoice and pay in their respective domestic currencies, which in turn would enable the development of an INR-AED foreign exchange market," RBI's statement said.
Deepening
- Comprehensive Strategic Partnership.
