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

05 May

Key objectives of caste count

'The Union Cabinet has decided that the next Census will include questions on caste to its enumeration of India’s population, for the first time in almost a century. ' T

Read More

05 May

2 new genome-edited rice varieties

'Agriculture Minister Shivraj Singh Chouhan recently released two genome-edited varieties of rice, the first achievement of its kind in the country.' These two varieties, which

Read More

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

India’s First Ai-Driven Magazine Generator

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