Khaleej Times, Sunday, Mar 19, 2023 | Sha'ban 27, 1444
UAE Central Bank, Reserve Bank of India to join hands in enabling fintech innovation
Emirates:
The Central Bank of the United Arab Emirates (CBUAE) and the Reserve Bank of
India (RBI) signed today a Memorandum of Understanding (MoU) in Abu Dhabi, to
enhance cooperation and jointly enable innovation in financial products and
services.
Under the MoU, the two central banks will collaborate on various emerging areas
of FinTech especially Central Bank Digital Currencies (CBDCs) and explore
interoperability between the CBDCs of CBUAE and RBI.
CBUAE and RBI will jointly conduct proof-of-concept (PoC) and pilot(s) of
bilateral CBDC bridge to facilitate cross-border CBDC transactions of
remittances and trade. The MoU also includes technical collaboration and
knowledge sharing on matters related to Fintech and financial products and
services, such as emerging trends, regulations and policies.
The MoU is expected to foster joint experimentation with regard to CBDCs and
facilitate other digital innovation initiatives between the CBUAE and the RBI.
This bilateral engagement of testing cross-border use case of CBDCs is expected
to reduce costs, increase efficiency of cross border transactions and further
the economic ties between India and UAE.