Indian currency rupee and indigenous payment technology UPI has now reached UAE. In this way another new achievement has been added in the internationalization of Rupee and UPI. With this, the payment between the two countries is going to be easier.
The talk made on these two important agreements
The Reserve Bank informed about the agreement in an official statement on Saturday. The Reserve Bank said that it has signed an agreement with the Central Bank of UAE to promote cross-border transactions in local currencies i.e. Indian Rupee and UAE Dirham. Apart from this, an agreement has also been reached between the two central banks on interlinking payment and messaging systems.
UPI started in France too
These two big agreements in the field of banking and payment There have been times when the Prime Minister Narendra Modi has gone on a visit to the United Arab Emirates. Prime Minister Modi has reached UAE on Saturday itself after completing his visit to France. Earlier, UPI was also launched in France in the presence of Prime Minister Modi.
Easier work for importers and exporters
Reserve Bank said that Governor Shaktikanta Das and the Central Bank on both the agreements Off UAE Governor Khalid Mohammed Balama signed. According to the Reserve Bank, the purpose of setting up a framework for the use of local currencies between the two countries is to promote the rupee and the dirham. It covers all current account transactions and approved capital account transactions. This will greatly benefit the importers and exporters of both the countries, because now they will be able to make payments in rupees and dirhams. This will also develop the rupee-dirham exchange market.
The agreement will benefit here
The use of local currencies in mutual transactions will promote trade between the two countries, because The process of payment will be easier and faster. This will reduce the cost of payment of business. This will increase mutual investment in both the countries. At the same time, this agreement will greatly benefit those Indians who are living in UAE and are sending money back to India from there.
UPI and IPP will be linked
Both Central Banks made another agreement regarding UPI and UAE’s technology instant payment platform. Under this, UPI and IPP will be linked for faster payment settlement. Also, it is proposed to link the domestic card switches of both the countries i.e. RuPay Switch and UAE Switch.
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