New Delhi, March 6 -- India and the UAE are exploring linking their central bank digital currencies for near-instant cross-border money transfers, potentially reshaping one of the largest remittance corridors.

If implemented, the system would allow funds to move directly between digital currency accounts, bypassing traditional bank-led settlement and sharply reducing transfer times.

The effort involves connecting the RBI's e-rupee with the UAE's digital dirham. Fintech platforms operating in both countries could debit a sender's CBDC wallet in India and credit the recipient in the UAE almost instantly.

The corridor could support retail remittances as well as larger business payments. The UAE, home to over 4 million Indians, remains one...