The Banking Executive Magazine - March 2023 Issue

CBUAE, Reserve Bank of India CBUAE, Reserve Bank of India SIGN DEAL TO PROMOTE INNOVATION IN FINANCIAL PRODUCTS AND SERVICES The Central Bank of the United Arab Emirates (CBUAE) and the Reserve Bank of India (RBI) signed today a Memorandum of Understanding (MoU) in Abu Dhabi, to enhance co- operation and jointly enable innova- tion in financial products and services. Under the MoU, the two central banks will collaborate on various emerging areas of FinTech especially Central Bank Digital Currencies (CBDCs) and explore interoperability between the CBDCs of CBUAE and RBI. CBUAE and RBI will jointly con- duct proof-of-concept (PoC) and pilot(s) of bilateral CBDC bridge to facilitate cross-border CBDC transac- tions of remittances and trade. The MoU also includes technical collab- oration and knowledge sharing on matters related to Fintech and finan- cial products and services, such as emerging trends, regulations and policies. The MoU is expected to foster joint experimentation with regard to CBDCs and facilitate other digital in- novation initiatives between the CBUAE and the RBI. This bilateral engagement of testing cross-border use case of CBDCs is expected to re- duce costs, increase efficiency of cross border transactions and further the economic ties between India and UAE. ISSUE 171 MARCH 2023 the BANKING EXECUTIVE 23