New RBI initiative for trade settlement in INR to help exports and trading

Mumbai: The Reserve Bank of India (RBI) on Monday introduced an international trade settlement mechanism in Indian rupee (INR) to promote exports from the country and support the increasing interest of the global trading community in Indian currency.
“In order to promote 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.
Under the new trade settlement mechanism banks would require prior approval from the Foreign Exchange Department of the RBI.
“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,” the central bank said.
The new arrangement would come into force with immediate effect. (UNI)