The Khalifa Fund for Enterprise Development, KFED, signed a Memorandum of Understanding, MoU, with the Central Bank of the UAE. This will enable the fund to employ the direct debit system of the Central Bank and receive payment from its entrepreneurs directly from their accounts in any bank that operates within the UAE.
The agreement allows the fund to deduct the amount due from entrepreneurs on a monthly basis from their bank accounts upon their approval and on the date determined by the parties. This will enhance the financing relationship between the project owner and the fund, reduce the cost of the project and expedite payment processes, and thereby help start-ups to efficiently implement their projects.
Mohammad Ali Bin Zayed Al Falasi, Deputy Governor of the UAE Central Bank, said the move will have a positive impact on the shift towards customer-driven digital payment services.
The agreement provides a detailed plan of action, including the identification of common challenges and the solutions that may be faced in the course of the implementation of Electronic Payment Systems.