RBI sets up mechanism to settle international trade payments in rupees


The Reserve Bank of India unveiled a rupee settlement system for international trade, aiming to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in Indian Rupee.

According to the new system, banks will need to seek prior approval to use. The new order takes immediate effect.

Exporters and importers can now use a Special Vostro account linked to the correspondent bank of the partner country for receipts and payments denominated in rupees.

Among other details, RBI said that all exports and imports under the invoicing arrangement may be denominated and invoiced in Rupee, while exchange rate between the currencies of the two trading partner countries may be market determined.

Apart from this, the RBI said that the Special Vostro Accounts can be used for payments for projects and investments, import or export advance flow management, and investment in Government Treasury Bills subject to Foreign Exchange Management Act, 1999 (FEMA).

Also, the bank guarantee, setting-off export receivables, advance against exports, use of surplus balance, approval process, documentation, etc., related aspects would be covered under FEMA rules.

━ related

Cyclone Biparjoy: India Issues Alerts as Severe Weather System Approaches

India has issued alerts and initiated precautionary measures as Cyclone Biparjoy intensifies and approaches coastal areas. With the potential for strong winds, heavy rainfall, and storm surges, authorities are taking proactive steps to ensure the safety of residents, evacuate vulnerable areas, and provide necessary support and resources to mitigate the impact of the cyclone.

International Day for the Fight Against Illegal, Unreported, and Unregulated Fishing 2023: A Global Call to Preserve Oceanic Resources

The International Day for the Fight Against Illegal, Unreported, and Unregulated (IUU) Fishing is observed on [date] each year to raise awareness about the detrimental impact of IUU fishing practices on marine ecosystems and coastal communities. This day serves as a reminder of the urgent need for international collaboration and stringent measures to combat IUU fishing and ensure sustainable management of our oceans.

Dennis Francis Elected 78th UNGA President: A New Leadership for Global Diplomacy

Dennis Francis, a respected diplomat, has been elected as the 78th President of the United Nations General Assembly (UNGA). His appointment brings fresh leadership and a commitment to fostering international cooperation, addressing global challenges, and advancing the agenda of peace, development, and human rights.

Regulator Directs SBI Life to Take Over Sahara Life Policies: Ensuring Stability and Protection for Policyholders

In a regulatory move, SBI Life Insurance has been directed to take over the policies of Sahara Life Insurance, ensuring continuity and safeguarding the interests of policyholders. This directive by the regulatory authority aims to maintain stability in the insurance sector and provide assurance to customers amidst the transition.

UAE to Host World’s Largest Conservation Conference in 2025: A Global Initiative for Environmental Preservation

The United Arab Emirates (UAE) has been selected as the host country for the world's largest conservation conference in 2025. This prestigious event will bring together experts, policymakers, and environmental enthusiasts from around the globe to address pressing conservation challenges, exchange knowledge, and forge new partnerships in the pursuit of a sustainable future.