Rupee reaches UAE, now transact through UPI there too – important agreement signed in Modi’s circle

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Abu Dhabi (Best Hindu News) – On the occasion of the official visit of Prime Minister Narendra Modi, the Reserve Bank of India and the Central Bank of UAE signed two agreements to create a framework to encourage transactions in the local currencies Indian Rupee and UAE Dirham and to establish a payment and messaging system. Joining is included. With this, UPI transactions will be possible in UAE as well. The agreement in this regard was signed by Reserve Bank Governor Shaktikanta Das and Central Bank of UAE Governor Khalid Mohamed Balma in the presence of Modi and United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan.

Under the agreement, a framework will be created between India and the UAE for transactions in local currencies with the aim of creating a local currency settlement system to promote the Indian rupee and AED in bilateral transactions. By creating a local currency settlement system, exporters and importers will be able to bill and make payments in their respective currencies. This will help to develop the Rupee AED foreign exchange market. This will also give a boost to investment and remittances between the two countries. During this, an agreement has also been signed for payment and messaging system. The two central banks have agreed to cooperate in linking their respective fast payment systems, the Unified Payments Interface (UPI) of India and the Instant Payment Platform (IPP) of the UAE. Along with this, Rupay switch and UAE switch will also be connected. Under this, the paid messaging systems of both the countries will also be integrated. The Reserve Bank said in its statement that by linking UPI IPP, users of both will be able to do cross-border transactions at quick, accessible and safe and affordable rates. The addition of card switches will enhance the acceptance of domestic cards for mutual transactions and card payments. Along with this, adding messaging will enable financial messaging for both the countries.

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