Several banks, including HDFC Bank and UCO Bank, have opened special vostro accounts as of date to facilitate overseas trade in the rupee
The government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to allow for international trade settlement in Indian rupees, a statement said
At a time when the rupee’s value is declining every week against the US dollar, saving dollar outflows becomes even more critical for the RBI
Changes have been made in the FTP to allow international trade settlement in Indian Rupee with a view to making INR a global currency
It was stressed during a meeting that banks should connect with their foreign counterparts for opening special rupee vastro accounts to facilitate cross-border trade in Indian currency rather than popular mode dollar
Under the new international trade settlement norms all exports and imports will be invoiced in Indian rupee and the exchange rates between the trading partners will be market determined
Certain African countries that are facing foreign exchange problems and issues with US Dollar and Euro mobilisation are also showing interest in the rupee (INR) trade mechanism
