Policy revised, international trade can now be paid in Rupees

Modified government Foreign Trade Policy to enable invoicing, payment and settlement of international trade in Indian rupees, activating the mechanism announced by Reserve Bank of India (RBI) to facilitate trade in local currencies.

The General Department of Foreign Trade (DGFT) is under the Ministry of Commerce and Industry announced on Friday the changes to the policy.

The Central Bank allows authorized banks in India to open Vostro accounts in special rupees by correspondent banks of any of the trading partner countries to facilitate transactions in dong Indian money.

Under the agreement, Indian importers will pay in rupees to a special Vostro account of the partner country’s bank against an invoice for the supply of goods or services from an overseas seller or supplier. trade policy said.

“Indian exporters that export goods and services through this mechanism will be paid for their exports in Indian Rupees from the balance in the specially designated Vostro account of the major bank. partner country,” it added.

Finance Minister Nirmala Sitharaman Last week held a meeting to review the proposed rupee trading and asked the banks to speed up the process of opening a special rupee Vostro account.

The commercial department have also been asked to contact merchants to encourage them to adopt this route.

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