RBI Delegation addressed in Dubai, the mechanism of cross border transaction between UAE and India in local currencies (AED vs INR)
11th June 2024, UAE: Indian Business and Professional Council (IBPC) Dubai, along with representatives from the National Payments Corporation of India and the Reserve Bank of India, showcased significant advancements in digital payments and currency settlement mechanisms at a recent conclave in their efforts to enhance economic collaboration and facilitate seamless cross-border transactions.
Convening the conclave, held recently at the Taj Dubai, Dr Sahitya Chaturvedi, Secretary General of IBPC narrated as showcase to the globalisation of the local currency settlement (LCS) framework, a key outcome of Prime Minister Narendra Modi’s visit to the UAE earlier this year.
Suresh Kumar, Chairman IBPC welcomed the delegation led by Mr. Radha Shyam Ratho, Executive Director at the Reserve Bank of India and the initiative represented by Consul General of India in Dubai – Shri Satish Kumar Sivan. In his opening remark, Kumar narrated that Indian rupee’s stability has been a cornerstone for innovative financial solutions, particularly benefiting the gold, gems, and jewellery sectors, which are prominent in India-UAE trade.
Shri Satish Kumar Sivan, Consul General of India in Dubai commented “The integration of India’s Unified Payments Interface with the UAE’s payment infrastructure marks a significant milestone in the bilateral economic relationship. He highlighted that this cross-border settlement mechanism, leveraging the stability of the Indian rupee and advanced digital payment technologies, will not only reduce transaction costs but also enhance financial transparency and convenience.”
The open session was asked and invited the queries from the attending representatives of Industries, financial institutions and professionals from varied fields to identify a common goal is to create a seamless financial ecosystem that benefits businesses and consumers alike, fostering deeper economic ties between the nations. Mr Sunil Sinha, governing board member of IBPC, opened the floor for traders to seek their clarifications through his thoughtful questioners.
Mr. Radha Shyam Ratho, Executive Director at the Reserve Bank of India echoed that “India is growing at rapid pace and these developments are part of a broader effort to strengthen India’s digital payment ecosystem, aiming for convenience, security, and efficiency. With trade between India and the UAE currently at $84 billion and a comprehensive economic partnership agreement in place, the two nations are on track to reach a $100 billion non-oil trade before the target line of 2030.”
Mr K. Kalimuthu, Consulate General of India, Dubai (Economic, Trade & Commerce) narrated the conclusion remarks and thanking note to IBPC Dubai organising the conclave, along with the Indian Missions in Dubai and Abu Dhabi. He concluded on a high note, with a commitment to ongoing collaboration and innovation, highlighting the strong and dynamic partnership between India and the UAE, and the vast economic opportunities it presents for both countries.
About Indian Business and Professional Council:
Established in 2003, Indian Business and Professional Council (IBPC) Dubai is the oldest and largest organization of Indian businessmen and professionals. This knowledge-sharing and networking platform is the sole Indian business council recognized and regulated by the Dubai Chamber of Commerce and Industry (DCCI/Dubai Chamber). IBPC aspires to sustain itself as a vibrant catalyst, promoting economic cooperation including trade, investments, and other economic and financial flows between the UAE and India as well as strengthening beneficial business relationships between UAE business entities and their Indian counterparts in the UAE and India across strategic sectors.
