The Reserve Financial institution of India stated Friday it had revoked its authorization for the Dubai-based UAE Trade Centre to behave as a fee system operator over failure to adjust to regulatory necessities.
The physique is a remittance, international change and invoice fee agency with a community of round 800 places of work in 31 international locations. It has 150 branches within the UAE.
India’s central financial institution introduced the choice in an announcement studying that UAE Trade Centre confirmed “non-compliance with regulatory necessities” with out giving any additional particulars. Though the choice was introduced Friday, the assertion learn that the revocation got here into impact on Oct. 10.
The UAE is house to some 3.5 million Indians, in accordance with the Indian Embassy in Abu Dhabi. India tops the checklist of nations by way of remittances despatched from the UAE. The subcontinent acquired round $125 billion in remittances in 2023, with the UAE accounting for 18% of this influx.
In July of 2023, the Emirati and Indian central banks signed two memoranda of understanding to strengthen the usage of nationwide currencies for bilateral commerce and hyperlink fee and monetary messaging programs.
Indian Prime Minister Narendra Modi signed the agreements on a go to to the UAE.
Below the settlement, the 2 establishments agreed to work collectively to develop a framework that promotes the usage of their respective nationwide currencies, the UAE dirham and the Indian rupee, in cross-border transactions. The framework is meant to streamline fee providers in each international locations by linking their immediate fee platforms, native fee card programs and monetary messaging programs.
Al-Monitor has contacted the RBI and UAE Trade Centre for remark.
