RBI takes steps to promote rupee as preferred currency for global trade: FM Nirmala Sitharaman
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In order to promote exports, Finance Minister Nirmala Sitharaman said the Reserve Bank of India (RBI) has taken steps to promote rupee as the preferred currency for global trade. Last month, RBI asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency.
She mentioned RBI has put in place the arrangement for invoicing, payment, and settlement of exports/imports in INR in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR. The framework allowing invoicing and payments for international trade in INR is applicable for any partner country seeking to undertake trade with India in INR in terms of RBI circular.
As per the RBI circular, the approval process is that for opening of Special INR Vostro accounts, banks of partner countries may approach Authorised Dealer (AD) banks in India which may seek approval from RBI with details of the arrangement. Besides, she also noted that an increase in exports may help reduce the trade deficit.
