The Reserve Bank of India introduced several initiatives on Wednesday to expand rupee usage in global commerce. Governor Sanjay Malhotra said authorized dealer banks can extend rupee loans to residents of Bhutan, Nepal and Sri Lanka for cross-border trade settlements. The central bank will allow Financial Benchmarks India Limited to publish additional currency reference rates for major trading partners to reduce conversion requirements.
Special Rupee Vostro Account holders gained permission to invest surplus balances in corporate bonds and commercial papers beyond existing government securities options. The regulator established these accounts in July 2022 to enable international trade invoicing and payments in Indian currency. New regulations aim to increase rupee liquidity for foreign residents while deepening domestic foreign exchange markets through direct currency pair quotations.
Special Rupee Vostro Account holders gained permission to invest surplus balances in corporate bonds and commercial papers beyond existing government securities options. The regulator established these accounts in July 2022 to enable international trade invoicing and payments in Indian currency. New regulations aim to increase rupee liquidity for foreign residents while deepening domestic foreign exchange markets through direct currency pair quotations.
