Sign In
Learn bits
World Affairs
Mahesh

19/07/23 07:00 AM IST

India, UAE Agree On Trade Settlement In Local Currencies, Linking Fast Payment Systems

In News
  • India and the UAE recently agreed to start trade settlement in their currencies and link their fast payment systems to make international financial interactions simpler.
About the MoU
  • The MoU on establishing a framework for the use of local currencies for transactions between India and the UAE aims to put in place a Local Currency Settlement System (LCSS) to promote the use of INR and AED bilaterally.
  • Under the MOU on ‘Payments and Messaging Systems’, the central banks of the two countries agreed to cooperate on linking their Fast Payment Systems – Unified Payments Interface (UPI) of India with the Instant Payment Platform (IPP) of the UAE.
  • The two sides also agreed to cooperate on linking the respective Card Switches (RuPay switch and UAESWITCH); and exploring the linking of payments messaging systems – Structured Financial Messaging System (SFMS) of India with the messaging system in the UAE.
  • The Indian Institute of Technology (IIT) Delhi is the second such institution to announce setting up an offshore campus after IIT Madras.
  • India and the UAE have set a target of $100 billion for bilateral trade.
  • Encouragingly, the trade volume has already reached $85 billion, showcasing the strong economic ties between the two nations.
  • The MoU on trade settlement and fast payment systems is expected to further enhance trade cooperation and facilitate smoother financial transactions.
  • Peekay Intermark Ltd. and YES BANK were the first users of the newly established LCSS.
  • They successfully settled a gold transaction worth Rs 12.84 crore for 25 kgs of gold, marking a significant milestone in utilizing the system for commercial transactions.
Source- Outlook

More Related Current Affairs View All

20 Jan

ILO report about international migrants

'International migrants reached 284.5 million, 255.7 million of them belong to the global working-age population (aged 15 and over).' International migrants are defined as perso

Read More

20 Jan

World Economic Forum

'The World Economic Forum (WEF) is holding its Annual Meeting from January 20 to 24 in Davos, Switzerland.' Attendees will include European Commission President Ursula von der L

Read More

20 Jan

SVAMITVA scheme

'Prime Minister Narendra Modi said once property cards under the Centre’s SVAMITVA scheme have been distributed in all the villages of the country, it could unlock economic a

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps