The Central Bank of the UAE (CBUAE) has issued two new regulations for the payments system operating in the UAE, media reports said. The two regulations are the Large-Value Payment Systems (LVPS) Regulation and the Retail Payment Systems (RPS) Regulation.
The two new payment regulations introduced by the CBUAE aim to promote robust financial infrastructure, which is essential for financial stability and consumer protection.
H.E. Abdulhamid M. Saeed Alahmadi, the Governor of the Central Bank of the UAE told the media, “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. The large value and retail payments systems regulations will help facilitate smooth, secure, and efficient conduct of transactions. The retail payments regulation will also provide a level playing field to advance innovation and competition, and financial inclusion”.
Last year, the CBUAE introduced a new overnight deposit facility starting from July 12 which reflects the monetary policy of the regulator. This facility introduced by the central bank allows conventional banks operating in the country to deposit their surplus liquidity at the central bank on an overnight basis.
In a statement, the central bank of UAE said, It will be “the prime facility for managing surplus liquidity in the UAE banking sector prior to the launch of the Monetary Bills Program and shall replace issuance of one-week Certificate of Deposits.”