International trade can now be settled in rupees as Center changes policy
The amendment to this policy will allow invoicing, payment and settlement of international trade in Indian Rupees.
SBI “no nodal bank for Russia-related transactions”; make arrangements to open a Special Rupee Vostro account
India’s trade with Russia in rupees to start soon
Under the arrangement, Indian importers will make payment in rupees to the Vostro special account of the partner country’s bank against invoices for the supply of goods or services from the foreign seller or supplier, as per the trade policy.
The finance minister also said that many countries have shown interest in bilateral rupee trading after the RBI recently announced a mechanism.
Speaking at an event, she said that this, along with other measures taken by the government, was aimed at full capital account convertibility.
In July, the RBI unveiled a mechanism to settle international trade in rupees to counter the impact of depreciating global currencies.
The move was seen as aimed at promoting trade with Russia, as the country used a similar mechanism to settle payments with Iran, which has also faced sanctions from the West.
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