India has decided to start conducting international trade settlements in rupees.
The Reserve Bank of India, acting as the country's central Bank, announced the introduction of a mechanism for international trade settlements in rupees. Before implementing this mechanism, banks must obtain prior approval from the Department of Foreign Exchange Operations of the Central Bank of India.
"In order to promote the growth of world trade with an emphasis on exports from India and support the growing interest of the world trade community in rupees, it was decided to introduce an additional procedure for invoicing, payment and settlement of exports/imports in rupees," the Indian Reserve Bank said in a statement.
