UAE Central Bank Issues Two New Payment Systems Regulationsby Fintechnews Middle East 21. March 2021
The Central Bank of the UAE (CBUAE) has issued two new regulations namely the Large-Value Payment Systems (LVPS) Regulation and the Retail Payment Systems (RPS) Regulation.
Both regulations apply to payment systems operating in the UAE and payment systems that offer clearing or settlement in Dirham outside the UAE.
The two 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.
Meanwhile, the RPS regulation focuses on systems for retail payments, which provide funds transfer, clearing, and settlement services related to retail activities.
The regulation covers all retail payment systems irrespective of currency or means of exchange in which the transactions are conducted.
System operators and settlement institutions of existing large-value payment systems and retail payment systems operating in the UAE must comply with the requirements of these two regulations by the end of the transitional period expiring at the end of February 2022.
The two regulations were published in the Official Gazette on 31 January 2021 and are now in effect.
His Excellency Abdulhamid M. Saeed Alahmadi, the Governor of the Central Bank of the UAE remarked,
“Payment systems are the “plumbing of the financial system” – a critical part of any country’s financial infrastructure.
The issuance of these two regulations is 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.”.
Featured image credit: Central Bank of the UAE (CBUAE)