On March 15, the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates signed a memorandum of understanding to cooperate and advance innovation in financial services.
The main focus of this collaboration will be on interoperability of central bank digital currencies (CBDCs) and the development of a proof-of-concept and pilot program for a CBDC bridge that would make it easier to facilitate remittances and trade.
The parties highlighted that the implementation of such a bridge would reduce costs, increase transaction efficiency and strengthen economic relations.
During talks in February, banking officials from India and the UAE discussed the possibility of using correspondent banks to establish a payment system between the rupee and the dirham. The system has been in development for a year, as the two countries currently use US dollars for payments settlement.
Walking the talk ! @RBI and UAE Central Bank signed a MoU for innovation in financial products. Development and interoperability in the field of Central Bank Digital Currencies (CBDCs) closer than ever. @DasShaktikanta @MEAIndia @Economyae @FinMinIndia @nsitharaman #FilePic pic.twitter.com/GDHC8Z9HdM
— India in UAE (@IndembAbuDhabi) March 15, 2023
