RBI allows trade settlement in rupees

RBI has allowed trade settlements between India and other countries, including Sri Lanka and Russia, in rupees.

“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.

Banks have to take approval on doing such transactions.

“(The) exchange rate between the currencies of the two trading partner countries may be market-determined,” the RBI said.