Issue: October 2022

in a current policy amendment, has announced one of the life-changing policies for Indian overseas trade. The RBI will now allow several authorized Indian banks to settle payments and invoices in Indian Rupees. Lubricating Indian foreign trade and marking the Indian rupee as a global currency is an active step of the RBI. The RBI-authorised Indian banks will now be capable of opening the Vostro accounts of several international trade partner countries of India that will facilitate the transaction of trade in Indian rupees.

Indian importers can now make payments in Indian Rupees domestic currency) to the Vostro accounts of the foreign countries in India. Similarly, when exporting products, the international countries can deposit money in these Vostro accounts, and the Indian traders will get the money in their own currency. This will surely improve International trade in India and facilitate a smooth and hassle-free cross-border business operation. The Directorate General of Foreign Trade (DGFT) has reduced the process friction.