The move will boost India\u2019s efforts to cut transaction costs by eliminating dollar conversions
\nNEW DELHI
\nIndia has signed an agreement with the United Arab Emirates that will allow it to settle trade in rupees instead of dollars, boosting India\u2019s efforts to cut transaction costs by eliminating dollar conversions.
\nDuring a visit by India\u2019s Prime Minister Narendra Modi to the UAE on Saturday, the two countries also agreed to set up a real-time payment link to facilitate easier cross-border money transfers.
\nThe two agreements will enable \u201cseamless cross-border transactions and payments, and foster greater economic cooperation\u201d, said a statement from the Reserve Bank of India on Saturday.
\nIndia, the world\u2019s third biggest oil importer and consumer and whose central bank last year vannounced a framework for settling global trade in rupees, currently pays for UAE oil in dollars.
\nBilateral trade between the two countries was $84.5 billion in the year from April 2022 to March 2023.
\nAn official with knowledge of the details of the agreement said India could make its first rupee payment for UAE oil to Abu Dhabi National Oil Co (ADNOC), Reuters reported on Friday.
\nThe Reserve Bank of India said the two central banks agreed to link India\u2019s Unified Payments Interface (UPI) and UAE\u2019s Instant Payment Platform (IPP).
\nSuch arrangements, which are a growing trend in Asia, typically lower the cost of payments.
\nModi landed in Abu Dhabi earlier on Saturday for a one-day visit and met President Sheikh Mohamed bin Zayed Al Nahyan.<\/p>\n","protected":false},"excerpt":{"rendered":"
The move will boost India\u2019s efforts to cut transaction costs by eliminating dollar conversions NEW DELHI India has signed an agreement with the United Arab Emirates that will allow it to settle trade in rupees instead of dollars, boosting India\u2019s efforts to cut transaction costs by eliminating dollar conversions. During a visit by India\u2019s Prime […]<\/p>\n","protected":false},"author":2,"featured_media":343348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-343341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n