RBI and Central Bank of UAE sign MoU to promote innovation in financial products and services

Category : International Published on: March 18 2023

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The Reserve Bank of India (RBI) and the Central Bank of the UAE sign MoU to promote innovation in financial products and services.
Memorandum of Understanding has been signed to promote innovation in financial products and services.
As per the MoU, both central banks will work together to explore Central Bank Digital Currencies and investigate interoperability between the CBDCs of CBUAE and RBI.
They will conduct proof-of-concept and pilot tests of the bilateral CBDC bridge to facilitate cross-border transactions of remittances and trade.
The joint exploration of CBDCs and cross-border testing is expected to pave the way for increased efficiency and cost reduction in cross-border transactions, benefiting both India and UAE.
The Reserve Bank of India (RBI) was established through the Reserve Bank of India Act 1934 and began operations on April 1, 1935.
The Government of India nationalised the RBI in 1949, and since then it is wholly owned by the government.
Under the Banking Regulation Act of 1949, RBI has the authority to regulate banks in India.
RBI is also empowered to regulate Non-Banking Financial Companies (NBFCs) under the RBI Act of 1934.