Several rounds of technical discussions have already taken place between the two central banks over the last two months to facilitate payments in nondollar terms, for non-oil transactions to begin with.
The move is set to broaden the RBI's rupee payment settlement mechanism announced in July. While that mechanism is aimed at settling payments with countries facing sanctions through special Vostro accounts, the talks with the UAE show an intent to broaden the initiative.
The local currency settlement of trade will begin with one or two banks on either side and later be scaled up, according to sources.
Two people aware of the matter told Mint that a highlevel visit around the end of January will firm up the rupee dirham payment settlement mechanism.
This story is from the January 23, 2023 edition of Mint Mumbai.
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This story is from the January 23, 2023 edition of Mint Mumbai.
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