India and UAE Agree to Currency-based Trade Settlement and UPI – IPP Integration

India and the UAE have agreed on 15 July 2023 to start trade settlement in their currencies and link the Indian Unified Payments Interface (UPI) with the UAE’s Instant Payment Platform (IPP).

  • The MoUs were signed by RBI Governor Shaktikanta Das and UAE Central Bank Governor Khaled Mohamed Balama.
  • Prime Minister Narendra Modi was in a official visit of UAE and held comprehensive talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan.
  • Indians in 10 countries can access the Unified Payments Interface (UPI) using their international mobile numbers.
  • The countries are Singapore, US, Australia, Canada, Hong Kong, Oman, Qatar, Saudi Arabia, UAE and UK.

Q.: Which two central banks signed the MoUs to promote the use of local currencies for cross-border transactions between India and the UAE?
a) Reserve Bank of India and Federal Reserve
b) Reserve Bank of India and UAE Central Bank
c) Federal Reserve and UAE Central Bank
d) Bank of India and UAE Central Bank

Ans : b) Reserve Bank of India and UAE Central Bank

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