RBI announces steps to encourage cross-border transactions in Indian rupee
2 months, 1 week ago

RBI announces steps to encourage cross-border transactions in Indian rupee

The Hindu  

The Reserve Bank of India on Thursday announced liberalised norms to encourage use of Indian Rupee and local/national currencies to settle cross border transactions. The Reserve Bank has already signed Memorandum of Understanding with the central banks of the United Arab Emirates, Indonesia and Maldives to encourage cross-border transactions in local currencies, including Indian Rupee. "Overseas branches of Authorized Dealer banks will be able to open INR accounts for a person resident outside India for settlement of all permissible current account and capital account transactions with a person resident in India," the RBI on Thursday said while announcing the changes made in the extant FEMA regulations. Under the liberalised FEMA regulations, persons resident outside India will be able to settle bona fide transactions with other non-residents using the balances in their repatriable INR accounts such as Special Non-resident Rupee account and SRVA.

India Indian Indian Rupee Fema Resident Rbi Rupee Account Able Transactions Inr Cross Border Transactions  resident  accounts  account  banks  rupee  encourage  crossborder  inr  steps  able  rbi  transactions  indian  announces  india

History of this topic

India bolsters rupee trade: RBI gives nod for 156 vostro accounts with 26 banks for partner nations
1 month, 2 weeks ago

India bolsters rupee trade: RBI gives nod for 156 vostro accounts with 26 banks for partner nations

India TV News  

In a significant step towards boosting bilateral trade in local currencies, the Reserve Bank of India has approved 156 Special Rupee Vostro Accounts across 26 Indian banks. These accounts have been opened by 123 correspondent banks from 30 trading partner countries with an aim to enable smoother trade settlements in rupees. "As of date, RBI has permitted 123 Correspondent banks …

Mint Primer | The significance of RBI’s plan to take the rupee global
2 months ago

Mint Primer | The significance of RBI’s plan to take the rupee global

Live Mint  

The Reserve Bank of India has allowed non-residents to open rupee accounts in the overseas branches of India-registered authorized dealer banks to conduct cross-border transactions. In a circular last week, RBI allowed overseas branches of authorized dealer banks to open rupee accounts for non-resident Indians for settling current and capital account transactions with Indian residents. RBI also allowed non-resident Indians …

Mint Primer | The significance of RBI’s plan to take the rupee global
2 months ago

Mint Primer | The significance of RBI’s plan to take the rupee global

Live Mint  

The Reserve Bank of India has allowed non-residents to open rupee accounts in the overseas branches of India-registered authorized dealer banks to conduct cross-border transactions. In a circular last week, RBI allowed overseas branches of authorized dealer banks to open rupee accounts for non-resident Indians for settling current and capital account transactions with Indian residents. RBI also allowed non-resident Indians …

RBI allows NRIs to open rupee accounts abroad with authorized banks
2 months, 1 week ago

RBI allows NRIs to open rupee accounts abroad with authorized banks

Live Mint  

MUMBAI : Non-residents will now be able to open rupee accounts in the overseas branches of India-registered authorized dealer banks and conduct cross-border transactions in rupees as the central bank eased rules in a move aimed at internationalization of the local currency. According to these new guidelines, RBI has allowed overseas branches of authorized dealer banks to open rupee accounts …

RBI hikes rate ceilings on banks FCNR deposits to support foreign flows
3 months, 2 weeks ago

RBI hikes rate ceilings on banks FCNR deposits to support foreign flows

Live Mint  

The Reserve Bank of India’s decision to increase the interest rate ceilings on foreign currency non-resident account, or FCNR, deposits is aimed at supporting foreign inflows into the country as the domestic currency battles devaluation pressures against the US dollar. Earlier, rates on FCNR deposits were subject to ceilings of overnight ARR for the respective currency/swap, plus 250 bps for …

RBI hikes rate caps on diaspora’s foreign currency deposits to attract flows
3 months, 2 weeks ago

RBI hikes rate caps on diaspora’s foreign currency deposits to attract flows

Live Mint  

Mumbai, Dec 6 The Reserve Bank on Friday announced a raise in the interest rate caps on the diaspora's foreign currency deposits, in a move aimed at attracting more capital flows amid pressures on the rupee. Announcing the fifth bi-monthly monetary policy for the current financial year, RBI Governor Shaktikanta Das said it has been decided to increase the interest …

Can an NRI-turned-resident freely repatriate foreign currency non-resident account FD?
3 months, 3 weeks ago

Can an NRI-turned-resident freely repatriate foreign currency non-resident account FD?

Live Mint  

When an NRI becomes a resident, can the foreign currency non-resident account FD be freely repatriated without coming under the ambit of the liberalised remittance scheme? Only an NRI or a non-resident of Indian origin is permitted to open a foreign currency account or the FCNR account as the name suggests, is a foreign currency deposit account in India. Regulations …

Vostro accounts to get a feature upgrade
4 months, 2 weeks ago

Vostro accounts to get a feature upgrade

Live Mint  

The Reserve Bank of India may permit the use of rupee vostro accounts for a wider variety of transactions, two people aware of the plans said, a move that promises to enhance the utility of these accounts and advances the use of the rupee in cross-border trade. Additionally, the RBI aims to enable bank lending to PROIs and facilitate foreign …

RBI allows resident Indians to open foreign currency accounts in GIFT City
8 months, 2 weeks ago

RBI allows resident Indians to open foreign currency accounts in GIFT City

Live Mint  

The Reserve Bank of India has expanded the scope of remittances to International Financial Services Centres under the Liberalised Remittance Scheme allowing Indian residents to open foreign currency accounts in Gujarat International Finance Tec-City. On Wednesday, RBI decided to allow authorised persons to facilitate remittances for availing financial services or financial products as per the International Financial Services Centres Authority …

RBI’s digital rupee must leap over many hurdles for wider adoption
9 months, 1 week ago

RBI’s digital rupee must leap over many hurdles for wider adoption

Live Mint  

The Reserve Bank of India has been striving to boost the adoption of its Retail-Central Bank Digital Currency or e-rupee. RBI is also aiming to onboard more non-bank payment service operators and make the e-rupee inter-operable with India’s Unified Payments Interface. Despite having clearly defined use-cases for their country-specific CBDCs, these pilot projects suffered from weak internet connectivity and poor …

RBI, Bank Indonesia Sign MoU to Promote Their Currencies for Cross Border Transactions
1 year ago

RBI, Bank Indonesia Sign MoU to Promote Their Currencies for Cross Border Transactions

Deccan Chronicle  

Mumbai: The Reserve Bank of India and the Bank Indonesia on Thursday signed a Memorandum of Understanding in Mumbai for establishing a framework to promote the use of local currencies viz., the Indian Rupee and the Indonesian Rupiah for cross-border transactions. The use of local currencies would optimise costs and settlement time for transactions said the central bank in a …

India, Indonesia central banks sign agreement to promote use of local currencies for bilateral transactions
1 year ago

India, Indonesia central banks sign agreement to promote use of local currencies for bilateral transactions

Op India  

The Reserve Bank of India and the Bank Indonesia signed a Memorandum of Understanding on Thursday for establishing a framework to promote the use of local currencies – the Indian Rupee and the Indonesian Rupiah for cross-border transactions. The MoU on establishing a framework for cooperation in the area of cross-border transactions in local currencies between India and Indonesia, aims …

RBI, Bank Indonesia sign pact for establishing framework to promote use of local currencies INR, IDR
1 year ago

RBI, Bank Indonesia sign pact for establishing framework to promote use of local currencies INR, IDR

The Hindu  

The Reserve Bank of India and the Bank Indonesia signed a Memorandum of Understanding on March 7 in Mumbai for establishing a framework to promote the use of local currencies viz., the Indian Rupee and the Indonesian Rupiah for cross-border transactions. The MoU on establishing a framework for cooperation in the area of cross-border transactions in local currencies between India …

RBI, Central Bank of UAE sign MoUs to promote local currencies, link UPI systems
1 year, 8 months ago

RBI, Central Bank of UAE sign MoUs to promote local currencies, link UPI systems

India TV News  

The Reserve Bank of India on Saturday signed two memorandums of understanding with the Central Bank of UAE in Abu Dhabi for cross-border transactions in local currencies and interlinking of payment and messaging systems. “The Reserve Bank of India and the Central Bank of UAE signed two MoUs today in Abu Dhabi for establishing a Framework to Promote the Use …

India and UAE set to use rupee, dirham for trade
1 year, 8 months ago

India and UAE set to use rupee, dirham for trade

The Hindu  

India on Saturday moved a step closer to increasing circulation of the rupee in the Gulf region with the signing of two memoranda of understanding between the Reserve Bank of India and the Central Bank of the United Arab Emirates. The first agreement between the RBI and the UAE Central Bank will establish a framework to “promote the use of …

RBI panel sets global road map for rupee
1 year, 8 months ago

RBI panel sets global road map for rupee

Live Mint  

MUMBAI : A Reserve Bank of India appointed committee on Wednesday has recommended a roadmap to achieve internationalisation of rupee including efforts for inclusion in the International Monetary Fund’s Special Drawing Rights basket. It also recommended integrating Indian payment systems with other countries for cross-border transactions and strengthening financial markets by fostering a global 24×5 INR market and promoting India …

Rupay prepaid forex cards now permitted for issuance by banks, says RBI Governor
1 year, 9 months ago

Rupay prepaid forex cards now permitted for issuance by banks, says RBI Governor

Hindustan Times  

Banks will now be able to issue RuPay Prepaid Forex cards, Reserve Bank of India Governor Shaktikanta Das announced on Monday while reading out the monetary policy statement after a three-day deliberation. Meanwhile, RBI's monetary policy committee unanimously decided to keep the repo rate unchanged at 6.5 per cent. Barring the April pause, the RBI raised the repo rate by …

RBI Permits Banking Units At IFSC To Settle NDDCs In Rupee
1 year, 9 months ago

RBI Permits Banking Units At IFSC To Settle NDDCs In Rupee

News 18  

The Reserve Bank on Tuesday permitted international banking units in GIFT City in Gujarat to settle non-deliverable foreign exchange derivative contracts in Indian rupee. As per the notification, Authorised Dealer Category-I banks operating IBUs can offer NDDCs involving the Indian rupee to resident non-retail users for hedging. Banks in India, which operate International Financial Services Centre Banking Units, were permitted …

Several countries willing to settle trade in Indian Rupee as it cuts transaction cost: Commerce Min Piyush Goyal
1 year, 11 months ago

Several countries willing to settle trade in Indian Rupee as it cuts transaction cost: Commerce Min Piyush Goyal

Firstpost  

Till now, 18 countries have opened Special Vostro Rupee Accounts to settle trade in INR New Delhi: Several countries are in talks with India’s central bank, RBI, to facilitate overseas trade in Indian rupee as it helps cut transaction cost, said Commerce and Industry Minister Piyush Goyal. So far, 18 countries have opened Special Vostro Rupee Accounts to settle trade …

Rupee trade arrangement to help cut transaction cost: Piyush Goyal
1 year, 11 months ago

Rupee trade arrangement to help cut transaction cost: Piyush Goyal

The Hindu  

International trade in the domestic currency will help reduce transaction cost for the industry and several countries are in discussion with the RBI on this, Commerce and Industry Minister Piyush Goyal said on Thursday. They want banks in India to connect with their foreign counterparts for opening special rupee vostro accounts to facilitate cross-border trade in the Indian currency rather …

Rupee trade arrangement to help cut transactions cost: Goyal
1 year, 11 months ago

Rupee trade arrangement to help cut transactions cost: Goyal

Deccan Chronicle  

ROME: International trade in the domestic currency will help reduce transaction cost for the industry and several countries are in discussion with the RBI on this, Commerce and Industry Minister Piyush Goyal said on Thursday. They want banks in India to connect with their foreign counterparts for opening special rupee vostro accounts to facilitate cross-border trade in the Indian currency …

India, Malaysia move beyond dollar to settle trade in INR
1 year, 11 months ago

India, Malaysia move beyond dollar to settle trade in INR

The Hindu  

India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023. The Union Bank of India in a statement said that it has become the first bank in India to operationalise this option by opening a Special Rupee Vostro Account through its “corresponding bank” in Malaysia — India …

Trade agreement between India, Malaysia now possible in 'Indian Rupee' | DEETS
1 year, 11 months ago

Trade agreement between India, Malaysia now possible in 'Indian Rupee' | DEETS

India TV News  

India Malaysia trade agreement: Trade between India and Malaysia can now be settled in Indian Rupee in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee. Know about India Malaysia trade settlement: More details about …

Rupee marches on: Sri Lanka's Seylan Bank opens INR-denominated Nostro account in Indian Bank
2 years ago

Rupee marches on: Sri Lanka's Seylan Bank opens INR-denominated Nostro account in Indian Bank

Firstpost  

Settling transaction in Indian rupee will help traders of both India and Sri Lanka who are facing shortages in Foreign Exchange Colombo: Settlement of international trade in Indian rupee has been expanding worldwide. To facilitate seamless cross-border transactions, Sri Lanka’s Seylan Bank has opened a rupee-denominated Nostro account in an Indian Bank in Mumbai. India-based State Bank of India has …

RBI has allowed banks from 18 countries to open rupee accounts for trade: Govt
2 years ago

RBI has allowed banks from 18 countries to open rupee accounts for trade: Govt

India TV News  

RBI has allowed banks from 18 countries to open rupee accounts for trade: Govt The Reserve Bank of India has allowed banks from 18 countries to open Special Vostro Rupee Accounts for settling payments in Indian rupees. The Reserve Bank of India has allowed banks from 18 countries to open Special Vostro Rupee Accounts for settling payments in Indian rupees, …

RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha
2 years ago

RBI has allowed banks from 18 countries to trade in rupee: government in Rajya Sabha

The Hindu  

March 14, 2023 09:36 pm | Updated March 15, 2023 09:14 am IST - NEW DELHI Banks from 18 countries have been permitted by the Reserve Bank of India to open Special Vostro Rupee Accounts for settling payments in Indian rupees, the government told the Rajya Sabha on Tuesday. In response to a question from BJP’s Sushil Kumar Modi, Union …

Eight countries open 50 special rupee vostro accounts in 6 months to trade in INR
2 years ago

Eight countries open 50 special rupee vostro accounts in 6 months to trade in INR

Firstpost  

Special vostro account holders are allowed to invest surplus balance in Indian government securities. The facility has been provided by the RBI to help popularise the new arrangement New Delhi: Eight countries have opened Special Rupee vostro Account to facilitate overseas trade in Indian rupee. Don’t Miss: Indian rupee could be the new dollar, says ‘Doctor Doom’ Nouriel Roubini Special …

Indian Bank to hold special Rupee Vostro accounts of 3 Sri Lanka banks
2 years, 2 months ago

Indian Bank to hold special Rupee Vostro accounts of 3 Sri Lanka banks

Firstpost  

New Delhi: Economic crisis-hit Sri Lanka has been keen to trade in the Indian rupee and to speed up the process, an Indian public sector bank – Indian Bank - has received a regulatory approval to hold special Vostro accounts of three banks from the South Asian island nation. Rupee Vostro accounts keep a foreign entity’s holdings in the Indian …

Sri Lanka, Russia to use Indian rupee for international trade, more countries in talks
2 years, 3 months ago

Sri Lanka, Russia to use Indian rupee for international trade, more countries in talks

Firstpost  

Sri Lankan banks have reportedly opened special rupee trading account called - Special Vostro rupee accounts, or SVRA - for trading in INR New Delhi: Sri Lanka has agreed to use Indian rupee for international trade. It comes days after the Government of India said it is looking at ways to bring countries that are particularly short of dollars into …

Banks looking at possibility of initiating rupee trade with Bangladesh, African nations
2 years, 3 months ago

Banks looking at possibility of initiating rupee trade with Bangladesh, African nations

Firstpost  

India imported goods worth $3,520.83 million from Egypt, of $1,004.24 million from Algeria and $2,725.08 million from Angola in the last financial year New Delhi: Banks are looking at the possibility of initiating rupee trade with Bangladesh and African countries like Egypt as part of exercise to make rupee an international currency, sources said. Currently rupee trade arrangements are with …

India rupee settlement mechanism draws interest from more nations
2 years, 3 months ago

India rupee settlement mechanism draws interest from more nations

The Hindu  

India's rupee trade settlement mechanism, a means of using rupees instead of dollars and other big currencies for international transactions, is attracting interest from more countries. The four countries have shown interest in opening special rupee accounts, called vostro accounts, but partner banks in India have not yet provided those facilities, documents showed. Talks with Gulf nations India continues to …

Nine special vostro accounts opened for trade in rupee after RBI approval
2 years, 4 months ago

Nine special vostro accounts opened for trade in rupee after RBI approval

The Hindu  

As many as nine special vostro accounts have been opened with two Indian banks after permission from the Reserve Bank of India to facilitate overseas trade in rupee, a top government official said on Tuesday. The move to open the special vostro account clears the deck for settlement of payments in rupee for trade between India and Russia, enabling cross-border …

Russian banks open special vostro accounts for foreign trade in rupee following RBI approval
2 years, 5 months ago

Russian banks open special vostro accounts for foreign trade in rupee following RBI approval

India TV News  

Highlights Russia's Sberbank and VTB Bank got approval from RBI to facilitate foreign trade in rupee Both the Russian banks opened special vostro accounts in each of their Delhi branches The RBI is keen to promote cross-border trade in rupee Russian banks: After getting a nod from the Reserve Bank of India, at least two Russian banks have opened special …

RBI intervening in NDF market, monitoring rupee positions: Report
2 years, 5 months ago

RBI intervening in NDF market, monitoring rupee positions: Report

Live Mint  

The Reserve Bank of India has been selling dollars in the non-deliverable forward market via local banks based in India's GIFT City International Financial Services Centre, as it seeks to support the sliding rupee, traders said. The rupee has repeatedly hits record lows in recent sessions as the likelihood of more super-sized rate hikes from the U.S. Federal Reserve piles …

RBI allows invoicing, payments for international trade in Indian Rupee
2 years, 7 months ago

RBI allows invoicing, payments for international trade in Indian Rupee

India TV News  

Highlights A circular in this regard was issued by the RBI on July 11, 2022 The circular was subjected "International Trade Settlement in Indian Rupees " The information was confirmed by Union Minister of State for Finance Bhagwat Kisanrao Karad Reserve Bank of India has allowed invoicing and payments for international trade in the Indian Rupee, Union Minister of State …

Using a rupee route to get around a dominating dollar
2 years, 7 months ago

Using a rupee route to get around a dominating dollar

The Hindu  

A number of countries, including India, are now considering the use of other currencies to avoid the U.S. dollar and its hegemonic role in settling international transactions. The present scenario In recent times, India has been taking an active interest in having the rupee used for trade and the settlement of payments with other countries, which include Russia, now facing …

RBI deals a blow against dollar dominance
2 years, 8 months ago

RBI deals a blow against dollar dominance

Live Mint  

The immediate impact of the Reserve Bank of India’s decision to permit settlement of international trade payments in rupees might be to facilitate ongoing trade with Russia and open a window for Sri Lanka to import desperately needed fuel, food and medicines from India on the strength of a rupee line of credit that India could offer. One or more …

RBI's Decision On Cross-Border Trade in Rupee: What Is The New System, How Will It Help?
2 years, 8 months ago

RBI's Decision On Cross-Border Trade in Rupee: What Is The New System, How Will It Help?

News 18  

The Reserve Bank of India‘s latest decision to allow rupee transactions in international trade will help in subsiding price pressures and strengthen India’s presence in the global market. It added that for settlement of trade transactions with any country, authorised dealer banks in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. According to …

RBI spells out re-settlement terms
2 years, 8 months ago

RBI spells out re-settlement terms

Deccan Chronicle  

Mumbai: The Reserve Bank of India on Monday said that it is putting in place a mechanism to settle international trade in rupees. Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, Central Office at Mumbai,” said the RBI in a circular. To settle the trade deals, …

RBI sets up system to settle trade in rupees
2 years, 8 months ago

RBI sets up system to settle trade in rupees

The Hindu  

The Reserve Bank of India has put in place a mechanism to facilitate international trade in rupees, with immediate effect. “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, …

RBI Announces Measures for International Trade Settlement in Rupees
2 years, 8 months ago

RBI Announces Measures for International Trade Settlement in Rupees

News 18  

Mumbai: The Reserve Bank on Monday asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of increasing interest of the global trading community in the domestic currency. For settlement of trade transactions, the concerned banks will require Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country. “Indian importers …

RBI announces measures for international trade settlement in rupees
2 years, 8 months ago

RBI announces measures for international trade settlement in rupees

India TV News  

The Reserve Bank on Monday asked banks to put in place additional arrangements for export and import transactions in Indian rupees in view of the increasing interest of the global trading community in the domestic currency. Apex exporters' body Federation of Indian Export Organisations said as per existing FEMA provisions, the final settlement has to be in free foreign exchange …

RBI issues draft proposals to liberalise overseas investments norms
3 years, 7 months ago

RBI issues draft proposals to liberalise overseas investments norms

Live Mint  

The Reserve Bank on Monday issued draft guidelines to further liberalise regulatory framework governing overseas investments with a view to promote ease of doing business. The RBI has placed on its website two documents -- draft Foreign Exchange Management Rules, 2021 and draft Foreign Exchange Management Regulations, 2021. Overseas investments and acquisition of immovable properties outside India by persons resident …

RBI allows banks to trade in offshore rupee derivative market; move will help to contain volatility in domestic currency
4 years, 11 months ago

RBI allows banks to trade in offshore rupee derivative market; move will help to contain volatility in domestic currency

Firstpost  

The Reserve Bank on Friday allowed banks to participate in offshore non-deliverable forward rupee markets with a view to contain volatility in the domestic currency Mumbai: The Reserve Bank on Friday allowed banks to participate in offshore non-deliverable forward rupee markets with a view to contain volatility in the domestic currency. “…the time is apposite to remove segmentation between the …

What is Liberalised Remittance Scheme and what’s it used for?
5 years, 6 months ago

What is Liberalised Remittance Scheme and what’s it used for?

Live Mint  

The Liberalised Remittance Scheme of the Reserve Bank of India allows resident individuals to remit a certain amount of money during a financial year to another country for investment and expenditure. According to the prevailing regulations, resident individuals may remit up to $250,000 per financial year. Individuals can also open, maintain and hold foreign currency accounts with banks outside India …

Remittances: A note of caution
6 years, 11 months ago

Remittances: A note of caution

Live Mint  

Time and again, there have been reports on transfers being made outside India that have run into issues with the tax and regulatory authorities. Resident individuals are allowed to remit an aggregate sum of $250,000 per financial year for any permissible current account or capital account transaction under the Liberalised Remittance Scheme without any approval from RBI. Permissible transactions include …

Good news! RBI eases norms to buy immovable property abroad
10 years, 8 months ago

Good news! RBI eases norms to buy immovable property abroad

Firstpost  

Encouraged by an improvement in the forex market, the Reserve Bank on June 3 had raised annual overseas investment ceiling for individuals to $125,000 from $75,000. Mumbai: Reserve Bank today said individuals can also use funds under Liberalised Remittances Scheme to buy immovable property abroad. Further, it is clarified that the Scheme can now be used for acquisition of immovable …

RBI hikes trade transaction limit to Rs 5 lakh
11 years ago

RBI hikes trade transaction limit to Rs 5 lakh

India TV News  

Mumbai: RBI Thursday hiked the trade related remittance limit from Rs 2 lakh to Rs 5 lakh per transaction, amid increased number of transactions handled by Exchange Houses. “On a review of the permitted transactions under the Rupee Drawing Arrangements, it has been decided to increase the limit of trade transactions from the existing Rs 2 lakh per transaction to …

RBI clamps down on outflows to defend rupee
11 years, 7 months ago

RBI clamps down on outflows to defend rupee

The Hindu  

With the rupee staying stubbornly below 61 to a dollar and headline inflation measured in terms of Whole Price Index rebounding to 5.79 per cent in July, the Reserve Bank of India, on Wednesday, stepped in with capital controls to check demand for the American currency. The fresh initiative on the dollar demand front comes even as the 10-year bond …

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