PIcture : ANI/X Video Tweets
In a bid to promote the use of domestic currency for cross-border settlements, the Reserve Bank has announced a slew of measures, including allowing banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for bilateral trade.
Observing that India has been making steady progress in the use of the Indian Rupee for international trade, RBI Governor Sanjay Malhotra said permission has been granted to Authorised Dealer banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for cross-border trade transactions.
Besides, he proposed to establish transparent reference rates for currencies of India’s major trading partners to facilitate INR-based transactions.
RBI has permitted wider use of Special Rupee Vostro Account (SRVA) balances by making them eligible for investment in corporate bonds and commercial papers.
SRVA is an account opened by a foreign bank with an Indian bank to facilitate international trade settlements directly in Indian Rupees (INR).
For the record , , the rupee recovered 9 paise from its all-time closing low to settle at 88.71 against US dollar.
Further , The rupee continued to face pressure in the first half of the current financial year (FY26), hitting fresh lows against the dollar, due to strengthening of the greenback, rising crude oil prices, and foreign outflows.
Rupee has depreciated by 3.7 per cent so far in the current financial year after starting at a good note in April.
The local currency witnessed a volatile trading range during the first quarter (Q1FY26) but ultimately ended the period largely flat, 0.3 per cent weaker against the dollar.
