India and the United Arab Emirates (UAE) have signed a Memorandum of Understanding (MoU) to establish a framework for using their respective local currencies in bilateral transactions.

Additionally, the countries have agreed to link the Unified Payments Interface (UPI) of India with the Instant Payment Platform (IPP) of the UAE. This linkage will facilitate fast, convenient, safe, and cost-effective cross-border funds transfers for users in both countries.

In another significant development, India has signed an MoU with the Education and Knowledge Department of Abu Dhabi to establish an IIT Delhi campus in Abu Dhabi. Prime Minister Narendra Modi, who recently visited the UAE, expressed his gratitude on Twitter.

The Reserve Bank of India (RBI) and the Central Bank of UAE have agreed to cooperate on various aspects, including linking their Fast Payment Systems (FPSs), Card Switches, and payments messaging systems. The UPI-IPP linkage will enable users in both countries to conduct cross-border funds transfers efficiently.

Furthermore, the establishment of a local currency settlement system between India and the UAE will facilitate traders to invoice and pay in their respective domestic currencies, contributing to the development of an INR-AED foreign exchange market.

During his visit, PM Modi was warmly welcomed by UAE President and Ruler of Abu Dhabi HH Sheikh Mohamed bin Zayed Al Nahyan at the Qasr Al Watan Presidential Palace. The discussions held between PM Modi and UAE officials focused not only on bilateral trade and cross-border transactions but also on India's full support for the UAE's COP-28 presidency.

PM Modi held productive talks with Sultan Al Jaber, the President-designate of the UN climate conference, reaffirming India's commitment to addressing climate change.

These recent developments reflect the deepening comprehensive strategic partnership between India and the UAE, strengthening cooperation in various sectors including finance, education, and technology.

Concluding a productive UAE visit PM Modi stated, “Our nations are working together on so many issues aimed at making our planet better. I thank HH Sheikh Mohamed bin Zayed Al Nahyan for the warm hospitality."

Image source: East Mojo