The Finance Ministry is scheduled to meet on Wednesday to discuss ways to promote cross-border trade in rupee instead of US dollar. The meeting will be attended by all stakeholders including banks and officials from the Ministries of External Affairs and Commerce. Financial Services Secretary Sanjay Malhotra will chair the meeting and is also likely to be attended by representatives of Reserve Bank of India, IBA and industry bodies.
Sources told PTI that banks The exporters will be asked to promote it by asking them to negotiate the rupee trade.
In July, reserve Bank of India Issued a detailed circular on cross border trade transactions.
The Reserve Bank of India has decided to put in place an additional mechanism for invoicing, payment and settlement of exports/imports in Indian Rupees.
In its circular, RBI had stated that “Indian importers importing through this mechanism shall make payment in Indian Rupees, which shall be credited to the Special Vostro Account of the correspondent bank of the partner country against the invoice for supply of goods or services.” Overseas seller/supplier.”
On exports, the central bank said that Indian exporters exporting goods and services through this mechanism would be paid export proceeds in INR from the balance in the designated special Vostro account of the correspondent bank of the partner country.
The move is to promote the growth of global trade with an emphasis on exports from India and to support the growing interest of the global trading community in the Indian Rupee.
At present, a major part of the bilateral trade between India and Russia is being settled in rupees due to sanctions imposed by major western countries US and Europe after the Kremlin attack on Ukraine.
On Monday, at an annual event at FIMMDA in Mumbai, RBI Governor Shaktikanta Das said, “The Indian Rupee has moved in a systematic manner so far in the current financial year. It has made its way into a world of sharp depreciation in other EMEs. and AE currencies. While the US dollar has gained 11.8% so far during the current fiscal, the Indian rupee has depreciated by 5.1%, the lowest in the world.”
“RBI is regularly in the market, providing liquidity and confidence to facilitate its smooth and normal functioning,” Das said.
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