India, UAE To Accelerate Local-Currency Settlement And Cross-Border Payment Integration

New Delhi, Sep 29 (KNN) India and the UAE have agreed to accelerate work on local-currency settlement and integration of their payment and financial messaging systems to facilitate cross-border trade and investment.

The decision was taken at the 14th meeting of the India-UAE High Level Joint Task Force on Investments, co-chaired by Commerce and Industry Minister Piyush Goyal and Abu Dhabi Investment Authority Managing Director Sheikh Hamed bin Zayed Al Nahyan.

India, UAE Push Local-Currency Settlement

The two sides reviewed progress by their central banks on local-currency settlement, payment and messaging system integration, and central bank digital currencies. They agreed to support timely implementation of the initiatives, reported Economic Times.

Under the local-currency framework, businesses can invoice and settle transactions in Indian rupees and UAE dirhams, while the countries are also working towards developing an INR-AED foreign exchange market.

UPI, RuPay Integration Under Discussion

India and the UAE are further exploring the integration of UPI with the UAE’s Instant Payment Platform, along with linkages between India’s RuPay and the UAE’s UAESWITCH card networks. 

Discussions are also underway to connect India’s Structured Financial Messaging System with its UAE counterpart.

The initiatives are aimed at reducing transaction costs and settlement times and improving access to cross-border payments.

Investment Cooperation Expands

The meeting also reviewed opportunities for two-way investment in sectors including energy, infrastructure, logistics, technology and AI, space, food security, agricultural innovation and startups.

The two sides discussed civil aviation cooperation and investment opportunities linked to an aviation and logistics hub in Dholera, Gujarat.

Bilateral trade reached USD 101.25 billion in 2025-26, including non-oil trade of USD 76.2 billion. India and the UAE are targeting USD 200 billion in bilateral trade by 2032.

CEPA Implementation And Joint Projects Reviewed

The meeting also reviewed implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into effect in May 2022, and progress on joint investment projects, including the Food Park project in Gujarat.

Recent investments noted at the meeting included Emirates NBD’s around USD 3 billion acquisition of a majority stake in RBL Bank, International Holding Company’s USD 1 billion investment in Sammaan Capital, and a joint investment intent of USD 11.5 billion for an integrated aluminium complex in Odisha.

Financial Presence Expands In GIFT City

The two countries also noted the opening of branches of Mashreq Bank, First Abu Dhabi Bank and Abu Dhabi National Insurance Company in GIFT City. An Invest India office in the UAE is expected to become operational before the end of 2026.

The India-UAE High Level Joint Task Force on Investments was established in 2013 to promote economic ties and address investment-related issues between the two countries.

(KNN Bureau)