Categories: Banking

RBI, Central Bank of UAE sign MoU to promote innovation in financial products and services

The Reserve Bank of India (RBI) on March 15 said that it has signed a Memorandum of Understanding (MoU) with the Central Bank of United Arab Emirates for promoting innovation in financial product and services.

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More About The RBI & Central Bank of UAE’s Collaboration:

Both central banks will collaborate on various emerging areas of FinTech, especially Central Bank Digital Currencies (CBDCs), and explore interoperability between the CBDCs of UAE’s central bank and the RBI.

Central Bank of UAE 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.

Significance of This Collaboration:

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.

The MoU also provides for technical collaboration and knowledge sharing on matters related to Fintech and financial products and services.

Piyush Shukla

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