On Wednesday, the administration notified Parliament that it had begun trading the rupee with its neighbors, including Nepal and Bhutan.
Anupriya Patel, a minister of state for commerce and industry, stated in response to a question in the Lok Sabha that a significant portion of trade between India and Nepal is conducted in Indian Rupee (INR) and that all bilateral trade with Bhutan is likewise conducted wholly in INR.
“A rupee trading system has been created to make national currency commerce with Russia easier. The minister responded in writing, “As of July 2, RBI has granted 34 applications from various Russian banks for establishing SRVA in 14 Indian commercial banks.
For international banks to establish Special Rupee Vostro Accounts (SRVA) in Indian commercial banks, the RBI has published guidelines.
She said that Sri Lanka had included the Indian rupee among its authorized foreign currencies.
Rupee vostro accounts may now be opened in India by authorized dealer (AD) banks.
These accounts “of eight corresponding banks from Sri Lanka have thus been opened with respective AD banks in India, with prior approval of the RBI,” she said.
She said that an agreement was made with Iran on November 5, 2018, to make it easier for the two countries to conduct bilateral trade payments.
On July 11, India and Bangladesh officially introduced a new system to settle commerce in Indian Rupees.
To settle bilateral commerce in INR, two banks from each of India and Bangladesh have been authorized.
These include Sonali Bank PLC and Eastern Bank Ltd from Bangladesh, SBI and ICICI Bank from India, and SBI and ICICI Bank.
A formal Exchange of Letters of Credit, or LC papers in INR, between the first exporter and importer via their banks was also completed on July 11, 2023, according to the spokesperson.
