RBI panel suggests measures to push Rupees beyond borders

An RBI-appointed committee has suggested various measures, like allowing Indian banks to offer services in rupee overseas, permitting non-residents to open INR accounts, and withdrawing withholding tax on masala bonds, to accelerate the pace of internationalisation of the domestic currency.

The report of the Inter-Departmental Group (IDG) on Internationalisation of INR also suggested that in the process of attaining the objective of INR as a “Vehicle Currency”, the Reserve Bank may target the inclusion of the INR in the IMF’s Special Drawing Rights (SDR) basket.