UAE Central Bank issues regulations on payment systems, including large-value transactions
Entities will have until February 2022 to be in compliance with changes
Abu Dhabi: The UAE Central Bank (CBUAE) has issued two new regulations related to 'Large-Value Payment Systems' and 'Retail Payment Systems '. Both apply to payment systems in the UAE and those that offer clearing or settlement in dirhams outside the UAE.
System operators and settlement institutions of existing large-value payment systems and retail payment systems in the UAE must comply with these by the end of the transitional period expiring at the end of February 2022.
“Payment systems are the “plumbing of the financial system” - a critical part of any country’s financial infrastructure," said Abdulhamid M. Saeed Alahmadi, the Governor. "These two regulations are an important milestone to reach our objective of providing robust, efficient, and accessible financial infrastructure in the UAE, serving our financial institutions, corporations, and people, and supporting our competitive economy,”
Financial 'infrastructure'
The regulations aim to promote robust financial infrastructure, which is essential for financial stability and consumer protection. They also facilitate the UAE’s international competitiveness.
The LVPS regulation sets standards for financial infrastructure systems that support wholesale payment activities in the UAE. The RPS regulation focuses on retail payments, which provide funds transfer, clearing, and settlement services. It covers all retail payment systems irrespective of currency or means of exchange in which the transactions are conducted.
“The large value and retail payments systems regulations will help facilitate smooth, secure, and efficient conduct of transactions," said Alahmadi. "The retail payments regulation will also provide a level playing field to advance innovation and competition, and financial inclusion.”