India's RBI allows invoicing, payments for international trade in rupee

The Reserve Bank of India (RBI) has allowed invoicing and payments for international trade in the Indian Rupee, Union Minister of State for Finance Bhagwat Kisanrao Karad said on Tuesday.

In a written reply to a question in Rajya Sabha, Karad said the central bank has allowed payments for international trade in the Indian currency through a circular on "International Trade Settlement in Indian Rupees (INR)" issued on July 11, 2022.

Giving more information, the Minister stated that in terms of Para 10 of the 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.

This is aimed at promoting “the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR,” the RBI said.

The AD bank maintaining the Special INR Vostro Account is required to ensure that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non Co-operative Jurisdictions on which FATF has called for counter measures, he said.

• India