The Central Bank issues two new payment systems

The Central Bank of the United Arab Emirates issued two new systems: the high-value payment systems system and the retail payment systems system.

Both systems apply to payment systems operating from within the UAE, or that provide clearing or settlement in UAE dirhams outside the UAE.

The two systems aim to strengthen the strong financial infrastructure necessary for financial stability and consumer protection, as well as support the global competitiveness of the UAE.

The High Value Payment Systems System sets standards for financial infrastructure systems that support bulk payment activities in the country.

The retail payment systems system focuses on retail payment systems that provide money transfer, clearing and settlement services related to retail payment activities.

The system covers all retail payment systems, regardless of the currency or medium of exchange in which the transactions take place.

System operators and settlement institutions associated with high-value payment systems and currently existing retail payment systems operating from the UAE must comply with the requirements of these two systems during the transitional period ending at the end of February 2022.

In this regard, Abdul Hamid Muhammad Saeed Al-Ahmadi, Governor of the Central Bank of the United Arab Emirates, said: “Payment systems are considered a“ pillar of financing systems, ”as they are the most important part of the country's financial infrastructure. In providing a strong and accessible financial infrastructure in the United Arab Emirates, serving our financial institutions and all our corporate and individual customers, and in support of our competitive economy better. Paying to retail is a level playing field to foster innovation, competition and financial inclusion. "

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