RBI and Central Bank of UAE signs MoU to promote innovation in Financial Products and Services

The Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUAE) signed a Memorandum of Understanding (MoU) today in Abu Dhabi, to enhance cooperation and jointly enable innovation in financial products and services.

In accordance with the MoU, the two central banks will work together on a number of cutting-edge FinTech initiatives, particularly with regard to Central Bank Digital Currencies (CBDCs), and investigate the possibility of interoperability between the CBDCs of CBUAE and RBI. To enable cross-border CBDC remittance and trade activities, CBUAE and RBI will jointly perform proof-of-concept (PoC) and pilot(s) of a bilateral CBDC bridge. This bilateral testing of CBDC cross-border use cases is anticipated to lower costs, boost cross-border transaction efficiency, and strengthen economic connections between India and the UAE. The MoU also calls for technical cooperation and information exchange on topics pertaining to Fintech and financial goods and services.