Instant payment platforms between India, UAE to be operational in 3 months
Feb 14, 2024
Abu Dhabi [UAE], February 14 : Following the significant agreement between India and the United Arab Emirates to interlink their respective instant payment platforms, UPI and AANI, the services connectivity is likely to be formally rolled out within three months.
During his official visit to the UAE on Tuesday, Prime Minister Narendra Modi held a bilateral meeting with the UAE President Sheikh Mohamed Bin Zayed Al Nahyan and witnessed the exchange of an agreement on the interlinking of UPI (India) and AANI (UAE), which is aimed at facilitating seamless cross-border transactions between the two countries.
Previously, during PM Modi's visit to Abu Dhabi in July 2023, the two leaders had signed an MoU on interlinking the payment and messaging systems of India and the UAE.
The 3.5 million strong and vibrant Indian community forms the largest expatriate group in the UAE.
UPI is India's mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer. UPI payment system has become hugely popular for retail digital payments in India, and its adoption is increasing at a rapid pace.
A key emphasis of the Indian government has been on ensuring that the benefits of UPI are not limited to India only, but other countries too benefit from it.
So far, Sri Lanka, Mauritius, France, UAE, and Singapore have partnered with India on emerging fintech and payment solutions.
Besides, an MoU was signed between the two countries on cooperation of digital infrastructure projects.
"This is a framework agreement that focuses on investment cooperation in the field of digital infrastructure. The focus is on developing expertise and sharing technical knowledge, advice, and skills, under this particular framework. Government regulatory authorities will also look to forge partnerships under this particular digital infrastructure MoU," Kwatra told reporters in a press conference.
It would focus on key aspects of digital space, including high-power computing, innovation, and platforms relating to the management of data, Kwatra added.
According to an MEA press release, India and the UAE are among each other's top trading partners, with a bilateral trade of about USD 85 billion in 2022-23. The UAE is also among the top four investors in India in terms of foreign direct investments in 2022-23.
