India, UAE agree to promote use of local currencies for cross-border transactions

Abu Dhabi, July 15: The Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (UAE) signed two significant Memorandum of Understandings (MoUs) on Saturday. These agreements aim to promote the use of local currencies for cross-border transactions and enhance cooperation by interlinking their payment and messaging systems.

The exchange of MoUs took place in the presence of Prime Minister Narendra Modi and UAE President Mohammed bin Zayed al Nahyan in Abu Dhabi, marking a milestone in fostering economic collaboration between the two nations.

#WATCH | PM Modi arrives in Abu Dhabi, UAE on an official visit, to hold meeting with President Sheikh Mohamed bin Zayed Al Nahyan on key bilateral issues pic.twitter.com/DJRAlBUOge — ANI (@ANI) July 15, 2023

According to the RBI's official release, the first MoU establishes a framework to facilitate the use of local currencies, namely the Indian rupee (INR) and the UAE Dirham (AED), for cross-border transactions. This initiative will enable the creation of a Local Currency Settlement System (LCSS) to promote bilateral trade and financial interactions using the INR and AED.

The LCSS will cover both current account transactions and permitted capital account transactions, offering exporters and importers the flexibility to invoice and make payments in their respective domestic currencies.

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This move will stimulate the development of an INR-AED foreign exchange market and bolster investments and remittances between the two countries. Additionally, it is expected to optimise transaction costs and settlement time, particularly for remittances from Indians residing in the UAE.

The two leaders held wide-ranging discussions covering various dimensions of the bilateral partnership, including trade & investment, fintech, energy, renewables, climate action, higher education and people-to-people ties. The discussions also covered regional and global issues… pic.twitter.com/CEEYe7Txz2 — ANI (@ANI) July 15, 2023

The second MoU focuses on cooperation in the realm of payment and messaging systems. It outlines plans to link the Fast Payment Systems of both countries, namely India's Unified Payments Interface (UPI) and the UAE's Instant Payment Platform (IPP). This linkage will enable users from either country to conduct fast, secure, and cost-effective cross-border fund transfers.

Furthermore, the MoU emphasises the mutual acceptance of domestic cards and streamlined processing of card transactions by linking the respective Card Switches—RuPay switch and UAESWITCH. Additionally, the MoU explores the potential for connecting the messaging systems, facilitating efficient financial messaging between the two nations. The aim is to enhance bilateral financial connectivity and promote seamless transactions.

India, UAE sign MoUs to promote use of local currencies for cross-border transactions

Read @ANI Story | https://t.co/mIfBm8SLoi#PMModi #India #UAE #MoU pic.twitter.com/1ZcNl1YSpX — ANI Digital (@ani_digital) July 15, 2023

Prime Minister Narendra Modi hailed this collaboration as a crucial aspect of India-UAE cooperation, highlighting its potential to foster economic growth and simplify international financial interactions. The MoUs were signed by the Governor of the RBI, Shaktikanta Das, and the Governor of the Central Bank of the UAE, Khaled Mohamed Balama, in the presence of the two leaders.

These MoUs between India and the UAE signify a significant step toward strengthening economic ties, promoting trade facilitation, and enhancing financial integration between the two nations. The initiatives are expected to bring greater convenience, efficiency, and cost-effectiveness to cross-border transactions, benefiting businesses, exporters, importers, and individuals alike.

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IIT Delhi to Establish Offshore Campus in UAE

New Delhi: The Union Ministry of Education and Abu Dhabi's Education and Knowledge Department (ADEK) have signed a memorandum of understanding (MoU) to establish an IIT Delhi campus in the United Arab Emirates (UAE). This announcement comes during Prime Minister Narendra Modi's official visit to the UAE.

Following in the footsteps of IIT Madras, IIT Delhi becomes the second IIT to announce the establishment of an offshore campus. Last week, IIT Madras signed an MoU to set up a campus in Tanzania's Zanzibar.

This marks a significant stride in our educational internationalisation and is testament to India’s innovation prowess. Education is the bond that unites us, it's the spark that ignites innovation. Together, we will leverage this power for mutual prosperity and global betterment. https://t.co/TFfmSFWzsQ — Narendra Modi (@narendramodi) July 15, 2023

The signing of the MoU for the establishment of the IIT Delhi campus in Abu Dhabi is seen as a significant milestone in the internationalization of India's education system. Union Education Minister Dharmendra Pradhan tweeted, "An exemplar of #NewIndia's innovation and expertise, the IIT Delhi campus in UAE will be an edifice of India and UAE friendship. It will set a brand new template for leveraging the power of knowledge for both mutual prosperity and global good as envisioned in NEP."

A historic moment! #IITGoesGlobal #IITDelhiInAbuDhabi pic.twitter.com/gRd9a2XDx6 — Dharmendra Pradhan (@dpradhanbjp) July 15, 2023

Under the plan, the Abu Dhabi campus of IIT Delhi will initially offer Master's degree courses starting from January 2024, while Bachelor's degree programs are set to commence from September 2024. This move is expected to provide Indian students with enhanced opportunities for higher education in a globally recognized institution while strengthening educational ties between India and the UAE.

The establishment of the IIT Delhi offshore campus in the UAE marks an important step towards expanding the reach of Indian educational institutions and promoting knowledge exchange on an international scale. It is anticipated that this collaboration will foster bilateral cooperation, drive innovation, and contribute to the growth and development of both nations.

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- With inputs from agencies