President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, and Prime Minister of India, Narendra Modi, were present to witness the signing of several significant agreements in Abu Dhabi on July 15. These included a memorandum of understanding between the respective Central Bank Governors, aiming to establish a framework for promoting the use of local currencies (INR-AED) in cross-border transactions. Another MoU was signed to interlink payment and messaging systems by the Governors of the respective Central Banks. There was also an MoU to plan for the establishment of an Indian Institute of Technology – Delhi in Abu Dhabi.
The leaders discussed, among other things, that developing the Local Currency Settlement System between the two countries to settle bilateral trade is a reflection of confidence. Moreover, it underlines the robustness of the economies in both countries and enhances the economic engagement between the UAE and India. The leaders expressed their interest in strengthening cooperation in the payment systems area by enabling integration between their instant payment systems to process cross-border transactions between the UAE and India more efficiently. Such cooperation will also include the mutual acceptance of domestic card schemes by interlinking national card switches. Integration between these systems will enhance access to payment services for the benefit of the citizens and residents of the two countries. The leaders reiterated their resolve to further strengthen investment ties between the two countries.