he Reserve Bank Of India (RBI) and theCentral Bank of UAE decided to move further on strengthening the economic engagement between the two countries by agreeing to allow exporters and importers from either side to invoice and pay in their respective domestic currencies rupee and dirham while working on a messaging system that could be an alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunication), the globally used system to remit across borders.
The second MoU dealt with Payments and Messaging Systems and includes linking the Fast Payment Systems (FPSs) Unified Payments Interface (UPI) of India with the Instant Payment Platform (IPP) of the UAE. It also envisages linking the respective payment card switches RuPay switch and UAESWITCH.
The UPI-IPP linkage will enable users in either country to make fast, convenient, safe and cost-effective cross-border funds transfers. Similarly, linking the respective card switches will facilitate the mutual acceptance of domestic cards and the processing of card transactions.