UAE, India leading banks sign MoU on fintech innovation

The Central Bank of the UAE signed on March 16 an MoU with the Reserve Bank of India to further innovation in financial products and services.

Under the agreement signed in Abu Dhabi, the two national central banks will collaborate on fintech, including digital currencies and interoperability between the two entities, reports Al Arabiya.

“CBUAE and RBI will together conduct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transactions of remittances and trade,” state-run Emirates News Agency (WAM) reported.

The agreement also covers technical collaboration and knowledge sharing along the same lines, including 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,” the report said.

“This bilateral engagement of testing cross-border use case of CBDCs is expected to reduce costs, increase the efficiency of cross-border transactions and further the economic ties between India and UAE,” it added.

Last month, the two countries marked one year since the signing of the landmark UAE-India Comprehensive Economic Partnership Agreement. It was the UAE’s first bilateral agreement and India’s first with a MENA-region nation.

Alongside marking the first anniversary of the agreement, the UAE Chapter of the UAE-India Business Council in Dubai was launched.

The UAE-India Business Council (UIBC) was established in September 2015 in New Delhi to serve as a catalyst for collaboration between the respective nations’ private sectors and enable UAE businesses to seamlessly expand their reach into India’s growing market.

The UAE Chapter will, in turn, support Indian enterprises to take full advantage of the many advantages and incentives offered by the UAE’s globally competitive ecosystem.