A notification from the RBI has announced that India now allows international trade settlement in Rupee with Russia, Sri Lanka, and other nations.
The Reserve Bank of India (RBI) has permitted rupee-based trade settlements between India and other nations, such as Russia and Sri Lanka.
“In order to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR,” the RBI said in a notification on Monday.
Before engaging in such transactions, banks must obtain authorisation.
“(The) exchange rate between the currencies of the two trading partner countries may be market-determined,” the RBI said.
"On first reading, this circular seems geared towards enabling rouble-rupee trades settled in rupees," Ananth Narayan, associate professo...
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