New Delhi, March 6 -- Instant money transfers between India and the UAE may be a reality soon with the central banks of both countries working to link their sovereign digital currencies, a person familiar with the development said. The move is significant since the UAE, home to more than four million Indians, is among the top sources of remittances to India.

Unlike regular money transfers mediated by banks, transactions in central bank digital currency (CBDC) happen in a flash, because the money moves directly from wallet to wallet. Retail transactions as well as large-value transactions are expected to benefit from such a linkage. The Reserve Bank of India (RBI) has been piloting its CBDC, e-Rupee, for over 3 years and is exploring fore...