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Payments firms get a do-over in the UAEMENA

Payments firms get a do-over in the UAE

The UAE Central Bank is issuing two new payment systems regulations regarding Large-Value Payment Systems (LVPS) and Retail Payments Systems (RPS).

The new regulations will set new standards to strengthen both payment systems, covering remittance systems within the UAE and clearing/ settlements in dirhams abroad. Financial institutions must comply by the end of the transitional period, which is February 2022.

FYI, LVPS deal with large-value and high-priority payments (think transfers between banks and central banks), and RPS handle payments of smaller value, such as direct debits, credit transfers, and cheques (your regular, day-to-day financial activities as a consumer).

why it matters
The new regulations will ensure that the UAE’s financial infrastructure grows stronger by upping the efficiency and security of payment transactions — so all in all, a more internationally-competitive payments system.