RBI introduces mechanism for international trade settlement in rupees
India TodayThe Reserve Bank of India is putting into place a mechanism for international trade settlements in rupees, which banks will need to seek prior approval to use, it said in a release on Monday. The order takes immediate effect and the mechanism is designed to "promote growth of global trade with emphasis on exports," the RBI said. "In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of 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 statement. The settlement of trade transactions under this arrangement must take place in INR in accordance with the procedure laid down in Para 3 of this circular, the RBI said.